Crude Oil Rises to Record Amid Concern Output Won't Meet Demand

[sabra]

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http://quote.bloomberg.com/apps/news?pid=10000006&sid=a6j2S47RZuw8&refer=home

Crude Oil Rises to Record Amid Concern Output Won't Meet Demand
June 27 (Bloomberg) -- Crude oil rose to a record in New York on concern that oil producers and refiners will strain to boost output to meet surging demand for fuel.

Iran and other OPEC members are pumping oil at ``the highest possible level'' and can't increase production to meet rising global consumption, Iranian Central Bank Governor Ebrahim Sheibany said yesterday.

....

Crude oil for August delivery rose as much as 63 cents, or 1.1 percent, to $60.47 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $60.40 a barrel at 11:41 a.m. Sydney time.

.....

Oil prices could rise to $100 a barrel in New York if instability continues in producing countries such as Iraq and Nigeria, Algerian Oil Minister Chakib Khelil said, according to the Arabic-language Saudi newspaper Okaz on June 25. Political instability will have an impact on oil output even if OPEC boosts its capacity in the next two to three years, Khelil said.

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[brokensymmetry]

1. Peak is now.

Get to know your neighbors. Get ready. Because - dead serious - this is going to change the way we live.

[FloridaPat]

2. But * and that Saudi king said just a few weeks ago there was a glut!

I heard them with my own ears. I'm sure neither of those two great leaders would like about something as important as the amount of oil around. I'm sure the real problem is a lack of refineries. Although, if the oil can't get through the refineries, wouldn't the price of a barrel of oil drop while the price of a gallon of gas go up?

[Porcupine]

6. There IS a glut!!! Of road tar-high sulfer heavy crude

That nobodies refineries can turn into gasoline and tankers won't carry.

[Systematic Chaos]

3. Let the mania begin

:scared:

[madrchsod]

4. there will be oil for along time------if--------

the united states decides to invest in transportation systems that consume less oil. the united states also has to invest in new generation of electric power,rebuild the power grid,and give tax credits or out right grants to home owners to buy the new generation of heating and cooling systems along with up grades in insulation. of course none of this will happen.

[Warren Stupidity]

12. on the other hand we are doing nothing of the sort. EOM

[mbperrin]

5. Will this affect the chocolate ration?

Worried....

[RUMMYisFROSTED]

14. Of course not. It's always been half of what it was.

[ailsagirl]

7. Yes, I've noticed those numbers on the pumps have risen again

After having fallen for a few weeks.

[FloridaPat]

9. They only fell because & came out and said there was a glut.

For some reason everyone believed him and his Saudi king buddy.

[daleo]

8. Bandar Bush is depressed

Maybe he knows something.

[The_Casual_Observer]

10. It will magically meet the demand when it gets to $80/barrel

[Doremus]

11. $90/bl is the equivalent of what we were paying in the 1970s

And you'll recall (or maybe not depending on your age) the rationing, long gas lines, Jimmy Carter in his sweater telling us to turn down the thermostats, runaway inflation and generally horrid economy ....

Just think, if we had continued to conserve and invest in the development of alternate fuels we wouldn't now be confronting the irretrievably screwed-up future we're leaving to our kids.

But wise man Raygun knew better and put a quick end to all that conservation baloney...

[Warren Stupidity]

13. 90 real dollars was a spike not a plateau

Real dollar crude oil prices peaked briefly at those levels and then rapidly declined. The sustained rise in prices from 72 - 82 reflects the adjustment of the american economy from domestic production to global production as we went through the domestic peak. We are now entering the planetary peak. We are not going to be rescued from this crisis by going off planet :-)



That graph is interesting on lots of levels, including putting the lie to all theories that the prolonged increase in this cycle is anything other than demand exceeding supply.

However from around 1978 until reaganomics kicked in around 1986, we actually managed to decrease petroleum imports, so there is hope, we just have to get back to that awful Carter-era malaise stagflation economy where we were actually living within our means.