Oil Futures Close Above $70

[RedEarth]

Oil futures rose above $70 a barrel in New York today, their highest level in nearly eight months, fueled by the ongoing diplomatic row over Iran's nuclear program, production shortages in Nigeria, and concerns about tight gasoline supplies in the United States.

Early in the day, the contract for light, sweet crude for May delivery touched $70.05 a barrel, its highest since Aug. 30, when the contract reached $70.85 after Hurricane Katrina. Weak volumes today added to the market's volatility. The Nymex was closed for the Good Friday holiday.

In London, Brent crude reached a record $71.40 a barrel, the highest since the contract began trading in 1988.

Analysts warn that oil prices — which have doubled over the past two years — are unlikely to fall soon. For one, the diplomatic showdown over Iran's nuclear ambitions is escalating. Another source of real concern, for oil traders, is the continuing shortages from Nigeria where armed groups have forced oil companies to slash their production by about 500,000 barrels a day, or more than 20 percent of the country's daily output.

"Without question, this is the worst political-risk year we've seen for energy supplies since 1973," said Ian Bremmer, the president of Eurasia Group, a consultancy in New York. "The threat of escalation from the two biggest threats out there — Iran and Nigeria — remains very strong. In both cases, the worst is still ahead of us."

http://www.nytimes.com/2006/04/17/business/17cnd-oil.html

[cliss]

1. Well then, I'd say it's time

to sell that SUV. Unload that motor home which sucks up about 5 miles to the gallon. Skip that driving vacation to California this summer. I'd love to hoard the stuff, but I can't.

This is going to be a very interesting year.

[Jayhawk Lib]

6. How about these

people flying private airplanes. The height of hypocrisy is some jerk that flies by private aircraft some place to tell how evil suvs are. Some of these hypocrites say we should go for alternatives such as wind power and the scream when some one is going to put a wind farm in their neighborhood.

[Inland]

2. It's political risk, as the guy says. Blame Bush.

There's not much difference in proven reserves from last year. But producers and shippers are taking a risk premium for the possibility that shit is going to get blown up.

While Bush can't control markets, he can be blamed for making a grab for Iraqi oil and missing, alienating Chavez, and other political instabilities.

[wiggs]

3. 3.01 for regular this morning in Southern Calif. nt

[raccoon]

4. How come nobody's talking about invading Nigeria?

:sarcasm:

[Jim Warren]

5. Because Venezuela is closer n/t