Oil prices above $83 after setting new record

[Oracle of Delphi]

Weak dollar and decline in oil inventories spark buying of oil futures

NEW YORK - Crude oil prices surged further into record terrain Thursday, breaching $83 a barrel as the weak dollar and last week's decline in U.S. oil inventories spurred buying of futures.

Gasoline futures jumped as well.

Oil prices have risen to records in seven straight sessions on the New York Mercantile Exchange on a mix of concerns about falling supplies and tight demand. But many analysts also blame an influx of speculative "nontraditional" capital into energy commodities. And that inflow increases when the dollar falls, analysts say.

Addison Armstrong, an analyst with TFS Energy Futures LLC, wrote in a research note that oil is rising due to weakness in the dollar, which has fallen to a record low against the euro, and is also trading at multi-year lows against other currencies.

A weak dollar supports oil prices by making futures cheaper for foreign investors, noted Antoine Halff, head of energy research at Fimat USA LLC.

"There just seems to be a huge amount of money out there that's moving to the oil in direct correlation with swings in the dollar," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill.

Link: http://www.msnbc.msn.com/id/12400801/

Edited September 21, 2007 by Pontiac Custom-S

[daves87rs]

I'm guessing it should be above 3 bucks here this weekend....

I was hearing that it could be almost 4 bucks by x-mas...and I'm getting the feeling it's going to happen.

I really wanted to get a small SUV like a jeep...looks like that might not happen....

[Robert Hall]

Hmmm....if it keeps going up, it'll be time to trade the GC on a Prius..

[FUTURE_OF_GM]

"There just seems to be a huge amount of money out there that's moving to the oil in direct correlation with swings in the dollar," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill.

Like I've said for years... Wars are not only fought on the battlefield now.

Weak economy + Artificially inflated fuel prices coming from "somewhere"....

You do the math, but to me it looks like someone is trying to give our economy that little push over the edge it needs to go into a full fledged recession.

[CARBIZ]

Like I've said for years... Wars are not only fought on the battlefield now.

Weak economy + Artificially inflated fuel prices coming from "somewhere"....

You do the math, but to me it looks like someone is trying to give our economy that little push over the edge it needs to go into a full fledged recession.

But that isn't new. A country's strength is constantly a balancing act between military spending and the economy itself. If a country doesn't spend enough on the military, it will be conquered. If it spends too much, the economy suffers and the country will go into decline.

The hyper-inflation of the '70s masked years of government over-spending on the military. In fact, I remember reading articles years ago that speculated about inflation being a good thing because it hid the Vietnam era over spending on the military.

I don't think oil prices are particularly over-priced at this time. There is perhaps a $10-15 a barrel 'war premium' due to Iraq, but the mess in Nigeria and Venezuela are creating their own pressures. You Americans are starting to feel the pinch because your dollar is beginning to sag, just as we Canadians are not paying $6 a gallon by now, which we would be if our dollar hadn't risen 50% in the past 4 years!

There is one big difference between now and 30 years ago when oil spiked the last time: now, the U.S. is importing nearly half its oil, whereas then it was not.

[ChevyNovs99]

Funny how a barrel is at $83 dollars and gas around me is $2.40 but when a barrel was $66, gas was at $2.95.

[pow]

In just a matter of weeks it went from $2.89/gal to $3.29/gal now. I know that's nothing compared to the rest of the world, but it's rather annoying to see my gas bills going into the $50s/week.

Edited September 21, 2007 by empowah

[Oracle of Delphi]

Just in time for Zeta! Tick Tock, Tick Tock! :AH-HA_wink:

[daves87rs]

Just in time for Zeta! Tick Tock, Tick Tock! :AH-HA_wink:

*kicks PCS*

Stop it man! You're going to drive me crazy with that!

Tick, Tick....

*starts looking around..*

[FUTURE_OF_GM]

There is one big difference between now and 30 years ago when oil spiked the last time: now, the U.S. is importing nearly half its oil, whereas then it was not.

Thank you consolidation!!!

Funny how a barrel is at $83 dollars and gas around me is $2.40 but when a barrel was $66, gas was at $2.95.

It's the same way here... Pretty much, when there's a profit to be made (READ: Summer demand) the price just 'magically' goes up.

[z28luvr01]

Just in time for Zeta! Tick Tock, Tick Tock! :AH-HA_wink:

clicky

[Oracle of Delphi]

clicky

Even if the mileage were equal, the use of the V8 will require premium unleaded fuel, at a higher cost. The 3.6 does not require premium, however that beast weighs over 4000 lbls and Holden suggest using higher octane fuel or adding an octane booster to the 3.6. Either way more costly to the consumer. Tick Tock, Tick Tock! :AH-HA_wink:

Edited September 22, 2007 by Pontiac Custom-S

[CaddyXLR-V]

Even if the mileage were equal, the use of the V8 will require premium unleaded fuel, at a higher cost. The 3.6 does not require premium, however that beast weighs over 4000 lbls and Holden suggest using higher octane fuel or adding an octane booster to the 3.6. Either way more costly to the consumer. Tick Tock, Tick Tock! :AH-HA_wink:

All the more reason for Holden to build the Torana and send it here as a Pontiac. 2.0L turbo and 3.6L DI would work perfectly.

[Oracle of Delphi]

All the more reason for Holden to build the Torana and send it here as a Pontiac. 2.0L turbo and 3.6L DI would work perfectly.

I approve of that project, since they need Wilmington's help!

[loki]

Hmmm....if it keeps going up, it'll be time to trade the GC on a Prius..

if the trade in value of the GC doesn't plummet because of the gas price...

Even if the mileage were equal, the use of the V8 will require premium unleaded fuel, at a higher cost. The 3.6 does not require premium, however that beast weighs over 4000 lbls and Holden suggest using higher octane fuel or adding an octane booster to the 3.6. Either way more costly to the consumer. Tick Tock, Tick Tock! :AH-HA_wink:

high octane may be recommended, but i hope not except on SC/TC engines. meaning, i hope the 3.6DI starts a trend with regular being the "best" to use, at least with anything "high volume".

[Cory Wolfe]

In just a matter of weeks it went from $2.89/gal to $3.29/gal now. I know that's nothing compared to the rest of the world, but it's rather annoying to see my gas bills going into the $50s/week.

For real. Gas is still relatively cheap here compared to where's it's been before.

[Flybrian]

Maybe its just me, but all this talk of higher gas prices is funny when people spend thousands on HD home entertainment systems and don't even get high-def programming.

[CARBIZ]

Maybe its just me, but all this talk of higher gas prices is funny when people spend thousands on HD home entertainment systems and don't even get high-def programming.

Yeah, my 'ex' was bragging about that the other day: as HD, just spent $800 on an Onkyo surround system, but had to cut back on his HD programming because it 'cost too much.'

Gas prices only matter to people who commute to work or for industry in general. I drive barely 600 miles a month, so a 50 cent swing in gas prices may piss me off, but doesn't effect my 'bottom line' that much.

[PurdueGuy]

Ah, another "let's all panic about gas prices" thread.

[pow]

Maybe its just me, but all this talk of higher gas prices is funny when people spend thousands on HD home entertainment systems and don't even get high-def programming.

Good point. Complaining about gas-prices is shortsighted. There are much more important long-term global energy concerns.