Bloomberg: Oil Rises to Record $60; Demand Strains Rigs, Pipes, Refineries

[bpilgrim]

June 24 (Bloomberg) -- Crude oil advanced for a second day to a record $60 a barrel in New York as surging demand forces producers and refiners to operate at full capacity.

``The world faces a lack of slack everywhere'' from the well- head to the refinery, said Paul Horsnell, the head of energy research at Barclays Capital in London. ``It's a legacy of decades of under-investment. The price would have to be here for some months to see a significant effect on demand.''

The Organization of Petroleum Exporting Countries is pumping almost as much crude as it can to boost inventories and meet increasing use in countries led by the U.S. and China. Refineries are struggling to make enough transport and heating fuels before the fourth quarter, when global consumption peaks.

Crude oil for August delivery rose as much as 58 cents, or 1 percent, to $60 a barrel, the highest since oil started trading on the New York Mercantile Exchange in 1983. It was up 29 cents at 2:29 p.m. London time. Prices have gained 57 percent from a year ago. They averaged less than $19 from 1995 through 1999.

In a weekly Bloomberg survey, 24 of 50 analysts and strategists questioned, or 48 percent, said oil prices will rise next week. Sixteen, or 32 percent said they will fall, and 10 forecast little change.

more...
http://www.bloomberg.com/apps/news?pid=10000086&sid=adTmZ5u6pS9c&refer=latin_america

Peak Oil Reality Crashing the Party, again...

peace

[Mari333]

1. The beginning of the end.

[Ripley]

2. Gas went up ten cents here in one day.

It was holding at $1.99 for weeks. Then Monday it was $2.09.

Wonder if it will hit $2.50 by July 4?

Woo hoo, light the fireworks!

[Roland99]

3. How's the dollar doing vs. the Euro?

I know it's down against the Brazilian currency today.


Dollar levels affect the price of oil more than fears of terrorism or peak oil.



Dollar's down:
http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38527.3630527315-837249867&siteID=mktw&scid=0&doctype=806&

[Massacure]

7. 1 EUR = 1.2083 USD. The Euro is up about .37% against the American dollar.

[Warren Stupidity]

4. Didn't the carlyle group just get finished telling us

that there was plenty of oil and not to worry and that the demand growth of 2-4m bl/day over the next few years was not a problem? I could have sworn that the crisis was over.

[Massacure]

5. It hit $60? NYMEX says $59.45 right now.

[mbperrin]

6. These majors are cashing out, because they know they're at

or near the end. For 30 years (since production peaked in 1972) in Texas, refineries have been disassembled and sold overseas (like the Odessa Natural Gasoline plant, which made gasoline from natural gas, built in the early 60s, which was sent to Russia 10 years ago), or converted to fuel depots (like the Odessa Shell refinery, which now receives gas from the Gulf Coast and produces nothing). The majors have sold their interests in West Texas to much smaller companies, with the idea that here's their chance to join the world of glamorous, high-stakes oil production.

In reality, they're being sold a used oil field, whose production last year was the same as 1935, but the truly evil part is that when you, the little guy, buy one of these old fields, you are also buying all the liabilities that apply, for any needed future cleanup or abandonment, and that can mean billions. As these little guys are bankrupted, as they have been being for 10 years or so, the state (TAXPAYERS) actually pay for the costs of these cleanups. But since this is Texas, there's never enough to do it all, so there's a list, and you have situations like an open abandoned well pouring salt water into Colorado City's drinking water at 50,000 gallons per day.

Majors-leaving and laughing.....

[leesa]

8. Oh, I forgot the price of oil is up because of the strained refineries!!

These guys are greedy psychopaths.

[bpilgrim]

12. "These guys are greedy psychopaths."

you got it

peace

[obreaslan]

9. Why not cut out the middle-man....

We should convert all of our cars to run on the blood of Men and women from 18-32 years old.

:grr:

[bananas]

10. "The world faces a lack of slack everywhere"

Praise Bob!
http://www.subgenius.com
http://groups-beta.google.com/group/alt.slack

[Barrett808]

11. Kill "Bob"

Or kill me. Or feed me.