Crude Oil Jumps to 4-Month High ($52 barrel )

[cthrumatrix]

Crude Oil Jumps to 4-Month High; Cold Snap Drains Fuel Supplies

Feb. 24 (Bloomberg) -- Crude oil rose to a four-month high, approaching $52 a barrel in New York, as a Siberian cold front gripped western Europe and forecasts called for freezing temperatures in the Northeastern U.S.

The surge in heating-fuel demand may drain inventories of heating oil and diesel. U.S. supplies probably dropped last week by 1.75 million barrels, according to a Bloomberg survey of forecasts before the government releases weekly estimates later today. Surging demand may strain supplies this year, with only OPEC able to pump more oil.

``It's mainly the cold snap that's added $4 or $5 to prices, particularly with Europe having a freeze from Siberia,'' said Jason Kenney, an analyst at ING Financial Markets in Edinburgh. ``The market is concerned that Russian supply growth won't be outstanding and that China is drawing a lot of oil. For prices to come down, you need for supplies to go ahead of demand.''

http://quote.bloomberg.com/apps/news?pid=10000006&sid=a5dB61QJTaas&refer=home

Call me "silly"... but it appears that this is normal weather in February...what the hell is odd? MAYBE it's the US dollar and the US deficits which causes the price of oil UP -- since it is priced in DOLLARS--- not EUORO's.

[still_one]

1. there goes my oil stocks

[brokensymmetry]

2. Or maybe it's time to start using Google.

Look up the term "Peak Oil"

I firmly believe it's here. If it is, then your world and mine are going to change a lot.

[cthrumatrix]

3. absolutely --- add in the Iran war chant and you have trouble

[Warren Stupidity]

4. its not odd at all

we've reached the early stages of the peak oil crisis. Oil prices are erratic, shifting drastically on the smallest change. Cheap oil production no longer meets demand.

[cthrumatrix]

8. they are revamping the way they count oil reserves

Energy sector seeks reserves revamp
Industry-sponsored study asks SEC to update system
By Stephanie I. Cohen, MarketWatch
Last Update: 6:45 PM ET Feb. 23, 2005


WASHINGTON (MarketWatch) -- The rules by which oil and gas companies report underground reserves is outdated and may be vastly misjudging untapped energy supplies, according to a study released Wednesday by Cambridge Energy Research Associates.


One of the biggest problems with the system, crafted by the Securities and Exchange Commission in 1978, may be that it is grossly underestimating reserves, indicated the report, funded by several major oil and gas exploration companies.

The SEC's system "is out of synch with the way markets operate today," said David Hobbs, a director at CERA and co-author of the report.

snip

http://www.marketwatch.com/news/story.asp?guid=%7b81D95...

[NickB79]

9. Yes, they are trying to count oil shales and tar sands now

Even though you get far, far less rate-of-return out of these than out of conventional oil wells, it makes it look better on paper to say they have these as reserves. Most oil shales and tar sands aren't even minable, as they require massive amounts of energy and water to extract the oil. Ironically they are located in areas like the US Southwest, which in the best of years is a dry grassland/semi-desert in many areas. Not much water in Nevada or Arizona to spare extracting oil, when droughts, irrigation and human demands are peaking annually.

Like smokers taking drags off discarded cigarette butts they find on the ground, the oil industries are really trying to scrape the bottom of the barrel here.

[wildmanj]

5. prices

its called PRICE GOUGING using weather as an excuse----go back and look at the huge profits big oil just reported----that invisible hand of the market is lifting $'s from your budget and food from your table

[liberal N proud]

6. Just in time for Spring Break vacations

Rip the money right from the pocket of those who saved all year to take a break from winter and drive south for a couple of week.
I bought gas last night and sat in lines like it was 1970. I got gas for $1.65 all other stations in area were at $1.99 just on news of the rise in prices.

[cthrumatrix]

7. but but Exxon has trouble making "ends meet"

[fortyfeetunder]

10. Another peak oil canary

It should be no surprise petrochemicals are a finite resource. But yet, the US has been an overall laggard to petrochemical independence. We are essentially 20 years behind in the energy technology movement because we essentially squandered a thrust into R&D in alternate fuel technologies because of an apparent "crude oil glut". We might be making hybrids now, but it's almost too late.