Oil hits record high $93.00 per barrel

[admin]

NEW YORK (AP) -- Oil futures rose Monday, but pulled back from a new trading record above $93 set after Mexico's state oil company suspended a fifth of its oil production due to stormy weather.The news that Petroleos Mexicanos, or Pemex, was to temporarily halt as much as 600,000 barrels of daily crude production came amid rising political tensions in the Mideast, a weakening U.S. dollar and a tight supply outlook that had already pushed crude oil to record prices.

"Mexico shut in production for a few days," which will likely disrupt imports and cut domestic oil inventories further, said Chip Hodge, energy portfolio manager at John Hancock Financial Securities in Boston.
Oil prices have jumped 9 percent since the Energy Department on Wednesday reported that oil supplies dropped sharply during the week ended Oct. 19. The Mexican oil fields are expected to return to service later this week.
Prices were also supported by fighting in Turkey between armed forces and Kurdish rebels, and the U.S. government's imposition last week of harsh penalties against Iran, the world's fourth largest oil producer.
However, many analysts argue that oil prices have risen to levels not supported by crude's underlying demand and supply fundamentals, and are due for a correction.
Light, sweet crude for December rose 33 cents to $92.19 a barrel on the New York Mercantile Exchange after rising as high as $93.20 in overnight trading. Crude prices are closing in on the inflation-adjusted highs hit in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.
Other Nymex energy futures were also higher. Gasoline for November delivery rose 2 cents to $2.294 a gallon, while November heating oil rose 1.09 cent to $2.4434 a gallon.
Natural gas futures rose 11.2 cents to $7.33 per 1,000 cubic feet.
In London, December Brent crude advanced 50 cents to $89.19 a barrel on the ICE Futures exchange.
At the pump, the national average price of a gallon of gas rose 0.7 cent overnight to $2.856 a gallon, according to AAA and the Oil Price Information Service. Gas prices have risen nearly a dime in two weeks.
The weak dollar was also supporting energy futures. The dollar's descent against other major currencies has drawn investors to crude futures as a hedge against the weakening currency and made dollar-denominated oil futures less expensive to people dealing in other currencies, said David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney.
Oil prices could get another boost this week if the Federal Reserve cuts interest rates.
"The central bank will in all likelihood cut rates again, thus pressuring the dollar even further and providing underlying support to commodities in general," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Despite oil's relentless march higher in recent weeks, many analysts argue that the price increases are being driven by speculation, not market fundamentals. Bullish news headlines out of Turkey, Iran and, on Monday, Mexico, contribute to this buying frenzy, these analysts argue.
"There is not shortage of news that speculators can use now to push oil prices higher," said Fadel Gheit, an analyst at Oppenheimer & Co.
Associated Press writers George Jahn in Vienna, Gillian Wong in Singapore and AP Business Writer Thomas Hogue in Bangkok, Thailand, contributed to this report.

[Studz]

NEW YORK (AP) -- Oil futures rose Monday, but pulled back from a new trading record above $93 set after Mexico's state oil company suspended a fifth of its oil production due to stormy weather.The news that Petroleos Mexicanos, or Pemex, was to temporarily halt as much as 600,000 barrels of daily crude production came amid rising political tensions in the Mideast, a weakening U.S. dollar and a tight supply outlook that had already pushed crude oil to record prices.

"Mexico shut in production for a few days," which will likely disrupt imports and cut domestic oil inventories further, said Chip Hodge, energy portfolio manager at John Hancock Financial Securities in Boston.
Oil prices have jumped 9 percent since the Energy Department on Wednesday reported that oil supplies dropped sharply during the week ended Oct. 19. The Mexican oil fields are expected to return to service later this week.
Prices were also supported by fighting in Turkey between armed forces and Kurdish rebels, and the U.S. government's imposition last week of harsh penalties against Iran, the world's fourth largest oil producer.
However, many analysts argue that oil prices have risen to levels not supported by crude's underlying demand and supply fundamentals, and are due for a correction.
Light, sweet crude for December rose 33 cents to $92.19 a barrel on the New York Mercantile Exchange after rising as high as $93.20 in overnight trading. Crude prices are closing in on the inflation-adjusted highs hit in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.
Other Nymex energy futures were also higher. Gasoline for November delivery rose 2 cents to $2.294 a gallon, while November heating oil rose 1.09 cent to $2.4434 a gallon.
Natural gas futures rose 11.2 cents to $7.33 per 1,000 cubic feet.
In London, December Brent crude advanced 50 cents to $89.19 a barrel on the ICE Futures exchange.
At the pump, the national average price of a gallon of gas rose 0.7 cent overnight to $2.856 a gallon, according to AAA and the Oil Price Information Service. Gas prices have risen nearly a dime in two weeks.
The weak dollar was also supporting energy futures. The dollar's descent against other major currencies has drawn investors to crude futures as a hedge against the weakening currency and made dollar-denominated oil futures less expensive to people dealing in other currencies, said David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney.
Oil prices could get another boost this week if the Federal Reserve cuts interest rates.
"The central bank will in all likelihood cut rates again, thus pressuring the dollar even further and providing underlying support to commodities in general," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.
Despite oil's relentless march higher in recent weeks, many analysts argue that the price increases are being driven by speculation, not market fundamentals. Bullish news headlines out of Turkey, Iran and, on Monday, Mexico, contribute to this buying frenzy, these analysts argue.
"There is not shortage of news that speculators can use now to push oil prices higher," said Fadel Gheit, an analyst at Oppenheimer & Co.
Associated Press writers George Jahn in Vienna, Gillian Wong in Singapore and AP Business Writer Thomas Hogue in Bangkok, Thailand, contributed to this report.

IF you did not Long Oil since the war started you dont know jack. As long as there is instability in the middle east the price of oil will continue to rise. Thats why companies LOVE the chaos in Iraq the lack of a peace process in Israel/Palestine and soon to be in Iran, guaranteeing oil prices remain high, and us addicts will keep paying (we need our fix)

[crazyray™]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

[Studz]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

DONT MAKE ME LAUGH. you really think the traders are manipulating oil prices. Stop watching the FOX news channel, lol

the reason is what i stated above. WIthout any change in the political climate You will never see it DIB. Ever, Why do you think Russia made peace with Iran. Guarantee the price of oil stay high. And why do u think Ahmadajinad likes to make threatening statements, cause it also runs his oil prices up.

[poppa pri]

The traders are the ones running it up right now, manipulating the news. Fair price of Oil is 60/barrel.

When the hedgies start pulling money out in the next few months you could very well see a retracement to 70 dollars/barell with NO CHANGE in political climate.

either way my VLO is going up lol down a dolla and change today but it'll bounce back 2+ tomorrow $$$

[crazyray™]

DONT MAKE ME LAUGH. you really think the traders are manipulating oil prices. Stop watching the FOX news channel, lol

the reason is what i stated above.

I don't watch Fox, but i'm not an idiot manipulated into thinking that Oil is driven up right now by political climate. It was as low as 50/barrel in the past 2 years when the climate was worse.

Easier to make me $$$

[TheHipHopBillGates]

It'll be even higher when the Fed cuts rates on Wednesday.

[Studz]

It'll be even higher when the Fed cuts rates on Wednesday.

i feel bad for those people waiting for the dollar to gain again, another interest rate cut on wed and it will slip even further.

[crazyray™]

It'll be even higher when the Fed cuts rates on Wednesday.

american dollar is gonna be worth rocks at this point

[poppa pri]

2.05 euro = 1 dollar...

sad...not to mention going to europe on vacation is out of the question...

[Studz]

2.05 euro = 1 dollar...

sad...not to mention going to europe on vacation is out of the question...

i think you have it the other way around buddy, lol

[crazyray™]

its the reason that alot of these tech stocks are seeing such good profits, when you have money flowing in from OUTSIDE of this country, no wonder AMZN ramped up so quickly on strong earnings.

[admin]

IF you did not Long Oil since the war started you dont know jack. As long as there is instability in the middle east the price of oil will continue to rise. Thats why companies LOVE the chaos in Iraq the lack of a peace process in Israel/Palestine and soon to be in Iran, guaranteeing oil prices remain high, and us addicts will keep paying (we need our fix)

I agree, plus not only companies like the chaos in Middle East, but countries like Russia are also benefitting from this since Russia's economy thrives on high oil prices.

[blondie]

Good thing I just rid myself of having a vehicle...

[TheHipHopBillGates]

i think you have it the other way around buddy, lol

yeah and I believe thats the GBP not the Euro, the Euro is floating to around 1.45, and a weakened dollar isn't neccessarily bad, exports are up............

[TheHipHopBillGates]

I agree, plus not only companies like the chaos in Middle East, but countries like Russia are also benefitting from this since Russia's economy thrives on high oil prices.

Yeah but Russia suffers from "Dutch disease", which is when one industry dominates your trade, it raises the value of the local currency and makes ever other industry harder in the nation harder to succeed.

http://en.wikipedia.org/wiki/Dutch_disease

[poppa pri]

i think you have it the other way around buddy, lol

lol my bad, typo...the $5 ncc buck got my head twisted lol

[Studz]

yeah and I believe thats the GBP not the Euro, the Euro is floating to around 1.45, and a weakened dollar isn't neccessarily bad, exports are up............

Correctamundo senor gates.

Either way its bad news for us.

[admin]

This is pretty good explanation by Russian Chess Master Garry Kasparov of political Nature of Oil.
Fast forward to 5 minutes

[TheHipHopBillGates]

This is pretty good explanation by Russian Chess Master Garry Kasparov of political Nature of Oil.
Fast forward to 5 minutes

yeah I saw this interview, he's pretty much saying it's a rogue state, that it's so corrupted that the people with $$$ are hiring their own security etc........