Oil Breaks $70/barrel

[astrosfan90]

Text

Ouch. Just in time for the nice weather and road trips, too. Convenient, isn't it?

Oil prices reached a new high of $70.88 a barrel Tuesday as persistent concerns about Iran's nuclear program and supply disruptions in Nigeria overshadowed a new report from OPEC forecasting weakening global demand.

"We have broken new ground today," said Victor Shum, energy analyst with Purvin & Gertz in Singapore. "The market sentiment is bullish, with yesterday's record closing, momentum has been built up to cause a wave of buying."

Light, sweet crude for May delivery on the New York Mercantile Exchange surpassed the previous intraday record of $70.85 a barrel in European electronic trading before easing back to $70.75. That was still 35 cents higher than on Monday, when the contract settled at a record closing price of $70.40 a barrel.

 

[Jaskalas]

And our peak in prices is not until September? Imagine how high it?ll go before then.

 

[dmcowen674]

Originally posted by: Jaskalas
And our peak in prices is not until September? Imagine how high it?ll go before then.

Already $3.19 gal here for regular and it's not even Memorial Day so at this rate should easily hit $4.

:thumbsup:

 

[Aimster]

we are the screwed

Countries like Saudi Arabia are bankinggg

$60/barrel x 8mbpd =480 million/day x 30 = 14.4 Billion
$70/barrel x 8mbpd =560 million/day x 30 = 16.8 Billion

= 202 billion/year

 

[dahunan]

Originally posted by: dmcowen674

Originally posted by: Jaskalas
And our peak in prices is not until September? Imagine how high it?ll go before then.

Already $3.19 gal here for regular and it's not even Memorial Day so at this rate should easily hit $4.

:thumbsup:

Huh? Is that reality?

I thought gas was cheaper down there...

I hope this causes a Civil War....

With mr bush in office Oil Companies get $15,000,000,000 tax breaks while Higher Education loans get $15,000,000,000 stolen from them... Tell me there is no criminal intent .... I hate these people.. I really do..

 

[jlbenedict]

I'm going to go out on a limb and make a prediction that by the Labor Day holiday, we'll be sitting around $3.59-3.79 per gallon, for just regular unleaded.

 

[Looney]

I remember a time when approaching the Iraq war, we were all worried it would break $40/barrel.

 

[Genx87]

Originally posted by: dahunan

Originally posted by: dmcowen674

Originally posted by: Jaskalas
And our peak in prices is not until September? Imagine how high it?ll go before then.

Already $3.19 gal here for regular and it's not even Memorial Day so at this rate should easily hit $4.

:thumbsup:

Huh? Is that reality?

I thought gas was cheaper down there...

I hope this causes a Civil War....

With mr bush in office Oil Companies get $15,000,000,000 tax breaks while Higher Education loans get $15,000,000,000 stolen from them... Tell me there is no criminal intent .... I hate these people.. I really do..

You hope it causes a civil war? Just as long as you are the first person in line to do the fighting.

 

[GalvanizedYankee]

I love 50mpg motorcycles 😀

Getting oil to the surface is called lifting cost. At $55+ the average well in the lower 48 can turn a profit. If the well is shut down for long periods, in an attempt to wait out a selling price increase, the well could stop producing or have a very reduced flow. This is a real consideration when talking heavy US crude.

Most of the wells in the ME are under high gas pressue, up-wards of 8,000psi. There is no lifting cost. You want more oil, open the valve a bit more. Remember the well fires in Kuwait=no lifting cost. Do note that there is an end point where too much flow can cause a well to have limited production. There is a sweet spot for a self lifting well to be worked.

My next car will be a diesel 😉 In less than a year gasoline will stabilize at just over $3 a US gal. Nation wide. Betcha.

Heating oil will be a killer this coming winter for those that use it. Diesel fuel cost will kill small trucking firms, agriculteral diesel(colored red & untaxed) will hit the black market to be used in trucks & heating. Betcha.

Suck it up men, oil has us by the short hairs 🙂 The USD is tied to oil so in that respect, this may not be too bad.

"and so it goes"...Linda Ellerbe said that everytime she signed off.


...Galvanized