Crude closes above $55; OPEC ahead

[swag]

http://www.marketwatch.com/news/story.asp?guid=%7BA6CD15D2-E45B-4B6F-973D-E98ECF8C57C8%7D&siteid=google&dist=

. . .

"I suspect that what OPEC does at their meeting this week will have little consequence on oil prices, which are clearly being driven by sentiment and expectations, which may or may not be fulfilled," said Tom Kloza, chief oil analyst at Oil Price Information Service.

. . .

"An increase in the OPEC quota, in one sense, is probably bullish because it will likely mean little in the way of an actual production increase," said Kyle Cooper, an energy analyst at Citigroup, in a note to clients. "But it will make it easier to lower the quota in the future."

In addition, OPEC, which produces 40% of the world's oil, has cut the discount it gives to the U.S. and Europe on the price of crude oil compared with the prices for futures contracts on international indexes, the Financial Times reported Monday. That means the costs for refiners have increased.

"If I were a betting man, I would bet on seeing $60 a barrel for crude (late summer), and I would bet on $2 to $2.20 a gallon for heating oil futures, which corresponds to $2.50 to $3 a gallon for diesel pump prices," Kloza said.

. . . more

[Gloria]

1. I just heard on the news (AAR) that the average price was .12

less than last year at this time and that the analyst they quoted was predicting the prices would continue to go DOWN later this summer...

:crazy:

[cliss]

2. Just as the Humvee's started to gather dust in the garage,

they were backed out. Everyone breathed a sigh of relief...."whew, I'm glad that's over". Now gas prices have come down.

Maybe they better park that SUV permanently, or better yet put in an ad to sell it right away.

Gas prices are not coming down. They will be moving up, steadily. I've read that Europe only uses half as much gas as the US. They will fare better in this oil-drought.

[phantom power]

3. "the remainder of this year..."

Interesting, to see these people talking about hurricanes, and sensitivity to disruptions. Supply is having a harder and harder time keeping up with demand.

Kloza expects to see a record gasoline price of $2.28 a gallon near Labor Day, which could be trumped with Category 3 to 5 hurricanes in the Caribbean and the Gulf of Mexico in August and September.

"The remainder of the year will be much less about OPEC and much more about national economies, hemispheric weather, and the fear of selling short into a market, which could move up $5 a barrel or 20 cents a gallon on disruptions that could be taken in stride during the previous decades," Kloza said.

[swag]

I'm glad about five things

1. My bicycle
2. My bus pass
3. My prius
4. My feet
5. My inflation indexed bonds

[swag]

4. I'm glad about five things

1. My bicycle
2. My bus pass
3. My prius
4. My feet
5. My inflation indexed bonds

[Earth_First]

5. Here we go again...

:eyes: