Oil And Gas Prices Hit New Milestones

Gasoline Jumps To Average Of $3.50 Per Gallon; Oil Spikes To $117 Amid Attacks On Industry

(CBS/AP)  Retail gas prices reached another new milestone Monday, jumping to an average $3.50 a gallon at filling stations across the country. Crude oil prices, meanwhile, kept setting records of their own, spiking to a record above $117 a barrel Monday after a Japanese oil tanker was attacked in the Middle East.

Diesel prices at the pump also struck a record high of $4.20 a gallon, according to AAA and the Oil Price Information Service.

Gas and diesel are expected to keep climing - gas because of the rise in oil and because the summer driving season, when demand is at its greatest, has yet to begin. And diesel, in demand throughout the world because it is used to haul goods of all kinds, shows no signs of halting its own advance.

"I'm not happy but you know I have to drive to work, I have to get around, there's nothing I can really do about it," a driver in Pittsburgh told CBS Radio News. "I don't have a job where I can take the bus everyday."

The attack on the 150,000-ton tanker Takayama came about 270 miles off the Yemen coast in the Gulf of Aden while it was heading for Saudi Arabia, its Japanese operator, Nippon Yusen K.K., said in a statement posted on its Web site.

None of the ship's 23 crew members was injured, but several hundreds of gallons of fuel leaked before a 1-inch hole in the tanker's stern was repaired, the company said.

Kyodo News agency reported that the Japanese tanker was fired on by a rocket launcher from a small boat.

Light, sweet crude for May delivery on the New York Mercantile Exchange rose to a record $117.40 a barrel but fell back to $116.63, down 6 cents from Friday's close. Oil prices had touched $117 on Friday before slipping.

"There's clearly some geopolitical tension in the market," said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia. "This will die down, but the market is pretty jittery at the moment.

Adding to the worries were claims Monday from the main militant group in Nigeria's restive south that it had launched two more attacks on oil pipelines in the region. There was no immediate confirmation.

On Friday, oil prices rose to touch $117 for the first time after an attack on a Royal Dutch Shell PLC pipeline by the Movement for the Emancipation of the Niger Delta.

Shell confirmed a pipeline leak that it said appeared to have been caused by explosives. It said it had isolated the line for repairs and that a small quantity of production had been shut.

Attacks since early 2006 on Nigerian oil infrastructure by the militant group have cut nearly one-quarter of the country's normal petroleum output, boosting oil prices. Nigeria is a major supplier of oil to the U.S.

Pervan said incidents such as the pipeline and tanker attacks were "one-off" issues that didn't really change the market. "They're not fundamental, they're not going to be sustainable," he said.

Comments over the weekend by an OPEC official that the group isn't likely to increase production also supported prices on Monday.

Abdalla Salem el-Badri, secretary-general of the Organization of Petroleum Exporting Countries (pictured at left), said Sunday that oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply - something he doubted.

"Oil prices, there is a common understanding that has nothing to do with supply and demand," el-Badri said on the sidelines of an energy conference in Rome.

Also over the weekend, Iran's hard-line President Mahmoud Ahmadinejad was quoted Saturday as saying crude oil prices at $115 a barrel are too low, and that oil must "discover its real value."

The Iranian president made the remarks during a visit to an oil and gas exhibition in Tehran late Friday.

In other Nymex trading, heating oil futures rose 2.87 cents to $3.210 a gallon while gasoline prices rose 0.07 cents to $2.99 a gallon. Natural gas futures rose 9.7 cents to $10.684 per 1,000 cubic feet.

In London, Brent crude futures for June were up 13 cents to $114.50 a barrel on the ICE Futures exchange.

[olebd]

Better start saving up for a really large drill and hope I can tap into some crude in my backyard. Oh wait, it''s impossible to save money when most of it goes to buying oil based products. Too late.

[gslinger3]

We have our own Oil on our own soil, JUST DRILL IT!!!!

[ichabod57]

Let''s see ... attack an oil tanker and oil prices go up. Don''t attach an oil tanker and oil prices go up because they think an oil tanker MIGHT be attacked some day.

So what''s the difference?

[sleepyric]

i bought a motorcycle..50+mpg....

[samrensho]

I''ll bet $hooter takes out hit contracts on pipelines and other oil infrastructure just to keep prices high.

[lewiston14]

I think we should get ready for $5 a gallon gas by the end of the year. A poster was right a tanker was hit and the price went up a tanker was not hit a the price went up. Now that they know they can hit one its going to be a turkey shoot in that narrow water way. Food prices will double yet again and a ticket from NYC to buffalo will be $1500. Nobody in their right mind should think or hope this election will change a thing. We have to change it but the big question remains how. Thest spectulators have to go first thing they make the markets jump and make tons of money in the process. I hate and dont often talk about the negative but if out economy goes down the rest of the worlds will also. Call it global depressin if you want We all got to big for our resources that are left which is not much on a grand scale.

[Gary Kempf]

Any reason real or imagined to drive the price of oil up....

Oil prices should always be Bush''s legacy.

[htboy08]

You cant drill for oil in America,You will disrupt the birds and the animals.Buy a horse!Better yet,Ask your congressman if your family can go on vacation with his.YOU CANT AFFORD IT!

[lewiston14]

you are correct navpro.

Another thought oil companies are not going to spend billions on drilling or anything else as long as the reep $5 a gallon gas. To do so would lower the price. Feel the paing for the truckers who pay the most of all and they have to pass it on or go under.

[omnibus66]

Oh my gosh, an oil tanker might have been attacked! If you can believe it. It seems that every day someone (remember that Bush, Cheney and Rice are all heavily invested in the oil industry) comes up with another B.S. excuse to raise oil prices.

What we are suffering has nothing to do with supply, demand, inventories, threats of attack, or any of the other made-up reasons that we are fed on a daily basis. This is a well planned product of the cooperation between OPEC and our current criminal Executive branch of government.

Impeach Bush and Cheney and oil prices will drop $50 overnight.

[sleepyric]

i''m all for drilling in America, but then the oil goes into the "global" oil company, and is just another source with a high price. How about stopping the war in iraq

[sleepyric]

i''''m all for drilling in America, but then the oil goes into the "global" oil company, and is just another source with a high price. How about stopping the war in iraq and eliminating the fed gas taxes, and state gas taxes instead of funding the stupid worthless war...

[lewiston14]

htboy08 you cant buy a horse green house gas its all becoming a joke

[lewiston14]

sleepyric Off topic but stop it how im open for ideas

[bgwinnett]

$117!!!!!!!!!!!!!!!
Man, and we haven''t fully started to descend the peak Oil death spiral yet! Mad max days are approaching, don''t when exactly, but they sure are coming! I''m off to Canada to join an Inuit tribe if they will have me, better learn how to make canoes and learn some shelter building techniques to enhance my marketability to them.

[gheemaster38]

Abdullah el al-Badri, secretary-general of the Organization of Petroleum Exporting Countries (seen at left), said Sunday that oil prices would likely go higher and that the group was ready to raise production if the price pressure was due to a shortage of supply - something he doubted.

IN plan english, The H*ll with the consumer, We just want to get RICHER!!!!

[bigchieftb]

Quick, Be sure to cut taxes on the large oil companies because they don''t have any economic incentive to look for oil. With profits so low, it''s a wonder why they will stay in business.

... Yeah right ...

[gheemaster38]

Oil bought sold on the blackmarket goes for what nowadays? Gotta be less then 3.85 a gallon.

[itgranny]

instead of going to iraq, maybe our tax dollars should be going towards building a US brand refinery, then kicking all the oil co. off of US owned leased land and we should go into business for ourselves. Gas may stay the same price, but the profits could at least be going towards lowering taxes, fixing our roads and a health care system that benefits all rather than making some fat cats fatter and the rest of us wondering if we''ll be able to afford to feed our families. Competition is a good thing.

[simpsonman19]

I''m absolutly tired of people complaining about high oil prices. If the following 3 statements are true about you then you have no place to complain.

1. You drive a car that gets less than 30 mpg highway.

2. Your current car is less than 5 years old.

3. Your family is 4 people are less.

If you have an economical car, at least you are buying less gas than those with guzzlers. If you bought a car within the past 5 years, then you already knew about high prices and if you bought a guzzler then that''s your own problem. And if you only have 2 kids then put them in a sedan, there is plenty of room. I can see if you have 3 or more kids then an SUV would be more pratical for you, but if you have the money to raise 3 or more kids then you should have enough to pay for gas and cut back elsewhere.

Why don''t people cut back on buying alcohol and cigarettes? How much money is thrown away each year buying these 2 products? In MA. if you smoke a pack a day then that''s over $35 a week. Enough to buy 10 gallons of gas.

I''m just glad I moved to the city and walk to work.

[lloydbest1]

Some comments on the above article:
Anything Bush''s evil twin in Iran says has to be taken with a sackful of salt.
Abdullah el al-Badri isn''t saying anything most of us don''t already know. Oil prices (and I suspect most other commodity prices as well) have NO relation whatsoever to "the market". Laws of supply and demand don''t apply here and have not for years.
It wouldn''t surprise me one bit to find the attack on that tanker had its impetus from the White House. The pipeline attacks in Nigeria have been on going since before Bush was elected, but it also wouldn''t surprise me to learn that he''s been directing someone to encourage their continuance. Bush and Cheney are both so heavily invested in big oil they would stand to lose megabucks if the prices ever fell to "true market value"
Having said all that, though, we will have to find ways to reduce our dependance on fossil fuel. Our best weapon against these oil interests is to use as little of their products as possible. As the world''s largest consumer of oil, America could send a powerful "f**k you (and the horse...)" statement to the oil production world if we would cut our consumption even by a measly 5%. We''d see big, positive changes fast!

[prinzowhales]

Its past time for nationalization of these swine. The energy sector under the boot of finance capitalists is simply charging what the market will bear and, thanks--as with Big Pharma--all of the capacity for launching alternative vehicles are within the pale of the automotive industry we are left with no viable alternative.

GMs destruction of the electric car--despite consumer satisfaction with the vehicle...despite their willingness to buy the vehicle...shows exactly what these price gouging b.astards are about. This car contained early 1990s technology and before GM crushed the cars they were getting up to 300 miles per charge on the newest batteries. OIL COMPANIES WERE BUYING UP BATTERY PATENTS TO PREVENT EXTENDED MILEAGE PER CHARGE!!

If some schmuck can have his auto seized for a little pot on a highway--should not these companies and their property be seized for their criminal conspiracy?!

This is not the first time! Decades ago the oil companies, automotives and tire companies were found guilty of conspiring to destroy rail transportation in the US...buying up streetcar lines and closing them down or selling them with agreements to only use oil products. IT IS TIME TO KILL THE OIL MONOPOLISTS! TO BREAK THE BACK OF THE FINANCIERS WHO ARE HOLDING THIS NATION AND THE WORLD CAPTIVE OVER A BARREL OF OIL!

[naucoming4u]

More record high oil prices...

...I''m sure the stock market will increase by at least 100 points today!

[reboot7]

Why don''t the President put a freeze on prices - oh yea I forgot his pocket is getting fatter by the higher oil prices.
And it always seems to have a tanker go down or an oil field ''hit'' or something really major (?) so the prices can continue to go up
Also I don''t drink or smoke - any more suggestions? I live in the same town I work in and am still not happy with the high prices.

[prinzowhales]

And let''s not forget about what ENRON did! All paid for by the rate payers for electricity. A thievery that could not have succeeded without the Democrats and the Republicans working together.

And what are we dying and squandering our treasure on in Iraq?...in this war for resources? OIL!! And not for ourselves...but for the corporations who are already generously doubled the price of gas for Americans for aiding them in acquiring Iraq''s oil and gas resources?

What kind of sub-human garbage would continue to vote for Demopublicans who support these greasy, murdering oil merchants?

[Gary Kempf]

simpsonman19 at 09:29 AM : Apr 21, 2008

Are you going to stop eating? Do you not heat your home? Are you not going to buy clothing? Do you not have electricity in your home? All these things are increasing because of oil. I am against gas hogs, wasteful attitudes of any energy. Yet unless you live in some kind of bubble, These prices are destroying American Families. No matter how well you plan or save,if your income does not keep up with what is being added on the weekly increases of everything. You lose..... So wake up! If reality is something you can''t deal with, then you have no right to make any comments to people who have that grip on reality....

[singingrick]

Thanks Bushies!

[omega39-2009]

I saw the first $4.09 a gallon gasoline here in my area this morning.

[watcher269-2009]

A Bushit story - just like an anchor falling onto the communication lines and the Iranians attacking a US warship.

This is more Political Bushit from our Republican News Orgs.

[prinzowhales]

See how much the "scolding" of the oil executives by the Demopublican Congress did to reduce oil prices? If you want continued ineffectual, craven and bought-dog leadership in Washington...keep voting Demopublican! It really helped when you voted Demo- in 2006 didn''t it? They really got down to the business of impeaching Bush and Cheney and ending the war didn''t they?

Know the Demopublicans for the smiley-faced, vote-grubbing lying scum that they are...married to little little boys, their prostitutes and the special interests. Keep voting for them!...Suckers!

[inventagod]

OilMan at the wheel of the USA...
hmmmm.....

[missingamerica]

Better order your bicycle now - I hear tell China has a huge market for used bikes now that our jobs have enabled them to drive.

[bgwinnett]

Forget Euro''s all the Dollars are going into Oil now.

[downtowner97]

Prince Waleed of Saudi Arabia just bought a solid silver Mercedes encrusted with diamonds. It cost $4.8 million, and it''s his 38th car.

[downtowner97]

Prinzowales, the price of oil has doubled in the 7 years Bush has been in office. *** Democrats! You could catch Bush raping your wife, and you''d blame the Democrats.

[trillion1]

Just keep reelecting incumbents, dolts.

[bgwinnett]

Wow why isn''t the Dow rising on this latest bad news, like it seems to every there is.

[bgwinnett]

oops missed out time.

[prinzowhales]

tuffone3--The tax on gas is not the problem--It has not changed since the Demopublicans have allowed gas prices to skyrocket. If the tax is eliminated, how will the Highway Fund be funded?

Notice, the oil keeps flowing...the gas keeps flowing...the only thing that has changed is the price that the Oil interests are charging for it. If the gas tax is suspended, that will just give the oil companies the oportunity to increase prices that much more.

Nationalize the b.astards!! McCain''s proposals do nothing to curb the real problem--Oil Monopoly gouging!

[Gary Kempf]

Wow why isn''''t the Dow rising on this latest bad news, like it seems to every there is.


--------------------------------------------------------------------------------

Posted by bgwinnett at 10:51 AM : Apr 21, 2008

Bank of America lost 77 million, both the bank and NYSE are waiting for the fed to give them 80 million before it climbs 300 points.

[lewiston14]

You have to stop talking about that impeaching Bush and Cheney concept. It would take longer to draw up the paperwork and votes then they have time in office. Do you think 2/3 of congress are going to vote for it? Besides Nancy said it was off the table

[lewiston14]

"Why don''''t the President put a freeze on prices" Because the oil compaines will respond by lowering output. You fill in the reasons they will use___________

[incog-nito]

Mission Accomplished! Again.

[mudrose-2009]

You could catch Bush raping your wife, and you''''''''d blame the Democrats.
Posted by downtowner97

What has he been doing to every average citizen since he has been in office?

Posted by ainttaken

Yeah, piracy on the seas is definitely Bush''s fault. He''s rapping everyone and gee Congress still won''t let us go nuclear or drill off shore. Imagine that.

[lewiston14]

incog-nito They had years of practice with it. Im trying to bring a smile to the people like me that fell so helpless. I drive 25 miles a month. I dont go anywhere the car is 20 years old and I spend $50 a week on food. What can I say im older and retired

[Gary Kempf]

"Why don''''''''t the President put a freeze on prices" Because the oil compaines will respond by lowering output. You fill in the reasons they will use___________


--------------------------------------------------------------------------------

Posted by lewiston14 at 11:22 AM : Apr 21, 2008

How about this one, "Because no elected official will stop them..." Or " Just for the H*ll of it."

[lewiston14]

navpro you hit the nail on the head

[lewiston14]

I would not trust the goverment to run the nations oil but there has to be atleast one good person left that is not on the take

[talkingham]

With a set of policies and a war that has completely destablized the entire Middle East oil producing region do you any of people really think this President gives a shiite about the price of oil other than seeing it go up so all of his Saudis terrorists supporting friends can make sure Al Quaeda is well funded?

Has this president done a single thing since he came to power other than make sure oil companies get the highest rpice possible?

Bush is the worst president in this country''s history. A complete slacker and liar who is little more than a mouthpiece for big oil.