Post anon. Just a thought:At $200.00 a barrel equal to ~$8.00 a gallon at the pump this will be your grocery getter and commute vehicle of tomorow for two.
Can you just imagine todays BIKER's going on a ride to Sturgis with their momma on the back.
What a site we'll all get to witness very soon
15 comments:
Oil Climbs Above $126 to Record as Dollar Weakens Against Euro
By Mark Shenk
May 9 (Bloomberg) -- Crude oil rose above $126 a barrel in New York to a record as the dollar weakened against the euro, prompting investors to buy commodities as a hedge against the currency's decline.
For a fifth day oil climbed to all-time highs as the euro strengthened on signs the European Central Bank will keep rates at a six-year high to cut inflation. Nigerian output fell to the lowest this decade in April because of a strike and attacks on oil installations.
``Oil is a safe haven because of the weak dollar and how badly the financial sector has been doing,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``There are also geopolitical concerns about places like Nigeria and Venezuela that are propping prices up.''
Crude oil for June delivery rose $2.27, or 1.8 percent, to a record closing price of $125.96 a barrel at 2:55 p.m. on the New York Mercantile Exchange. The contract surged to $126.27 today, the highest since futures began trading in 1983. Prices are up 8.3 percent this week, the biggest weekly gain in more than a year. Futures have more than doubled in the past year.
Brent crude oil for June settlement climbed $2.56, or 2.1 percent, to close at a record $125.40 a barrel on London's ICE Futures Europe exchange. The contract touched $125.90 today, the highest since trading began in 1988.
Oil at $200 is ``possible if we have a continuing devaluation of the dollar with respect to other currencies,'' OPEC President Chakib Khelil said yesterday at a press conference in Washington.
The dollar fell 9.6 percent since Sept. 18, when the Federal Reserve began cutting rates to ease financial-market strains and stave off a recession. The U.S. central bank cut rates seven times while the ECB has left rates unchanged. The dollar fell 0.6 percent to $1.5483 per euro at 3:27 p.m. in New York.
Fed Policy
``Fed policy is accommodating the rise in energy prices,'' said Bill O'Grady, director of fundamental futures research at Wachovia Securities in St. Louis. ``The Fed and federal government are putting more liquidity in people's pockets, which is being spent on expensive oil.''
The U.S. government started sending $117 billion in tax rebate checks last week as part of its fiscal stimulus plan.
Goldman Sachs analyst Arjun N. Murti wrote in a report on May 6 that ``the possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months.'' Murti first wrote of a ``super spike'' in March 2005, predicting crude may trade between $50 and $105 a barrel through 2009.
``There's been a paradox, prices have surged over the last week while we've had bearish headlines,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. ``Clearly there's been a lot of fund buying on the back of Goldman's super-spike repot. They were right on the nose last time.''
OPEC Meeting
The Organization of Petroleum Exporting Countries, the producer of more than 40 percent of the world's oil, may meet before September to consider increasing output in an attempt to rein in record crude-oil prices, Libya's Shokri Ghanem said.
``We would consider among other options the possibility of increasing output as a way to ensure market stability,'' Ghanem, who is the chairman of Libya's National Oil Corp., said in a telephone interview today from Tripoli.
Nigerian Petroleum Minister of State H. Odein Ajumogobia said today that there are no plans for an additional OPEC meeting because oil supplies are adequate.
OPEC kept its production target unchanged at its past three meetings. The group last increased its target on Nov. 1.
``OPEC loves high oil prices, but they also value an orderly market,'' said Adam Sieminski, Deutsche Bank's chief energy economist, in Washington. ``It would not surprise me if they meet soon to discuss these issues.''
Lebanese Unrest
Gun battles raged across western and southern Beirut, leaving 10 people dead, as fighters from the Shiite group Hezbollah pressed their party's challenge to Lebanon's pro- Western government. Oil surged to a record $78.40 on July 14, 2006, on concern fighting in Lebanon between Israel and Hezbollah would spread through the Middle East.
``The unrest in Lebanon could be very important,'' O'Grady said. ``This could be an early indication of further violence in coming months.''
Gasoline and heating oil also touched records in New York on forecasts for increased fuel demand. An Energy Department report on May 7 showed that U.S. inventories of distillate fuel, a category that includes heating oil and diesel, fell last week.
Record Fuel Prices
Heating oil for June delivery climbed 12.62 cents, or 3.6 percent, to close at a record $3.636 a gallon in New York. The contract reached $3.6524 today, an all-time high. Some traders use heating-oil futures to hedge their diesel and jet-fuel purchases.
Gasoline futures for June delivery rose 6.34 cents, or 2 percent, to $3.2012 a gallon in New York after reaching a record $3.2038 today.
U.S. pump prices followed futures higher. Regular gasoline, averaged nationwide, rose 2.6 cents to a record $3.671 a gallon, AAA, the nation's largest motorist organization, said today.
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.
Last Updated: May 9, 2008 17:35 EDT
Where was LLNL when we needed an answer to this national problem? You got it. Still trying to figure out how to blow up the world with more efficient WMD's. It's time the mission of LLNL is changed, overnight. The oil companies need to be told to go to he-- and if they need help we'll show them the way.
Just imagine next year when we get a 10% reduction in funding and everything from energy to materials is twice as expensive.
I see another 20-50% layoff coming, just to pay for the hyper-inflation.
My understanding is that fuel and food cost are not used when calculating the cost of living?
So if they were how far are we behind in pay raises just to stay afloat? I think this is total bunk.
May 9, 2008 8:13 PM
You are absolutely correct. That 2000 more people was going to come long before the cost of fuel and utilities arrived, so maybe that 2000 should go to about 2,500people. What I'm more concerned about is the cost of coming to work. As it stands now I am paying $1,100 a month in fuel cost at the current $3.979 for fuel. At this cost it won't be long before I won't be able to afford to come to work. I guess it's party over, give the house and cars back to the bank and move on. Pretty good for working at LLNL for 26 years hah? Thanks George and all of the directors of LLNL before his time for your astute planing of LLNL future and our national concerns.
$1,100 per month for fuel? What do you drive, a Canyonero? I can only assume that you have a commute of around 100 miles per day and drive a 3/4-ton diesel capable of 10 MPG. You need to look into ridesharing...
No, it won't be Honda 50cc for everyone. There will always be the rich who have their SUV's, house trailers, and fancy cars that'll make sure you understand who's king of the hill. The rest of the two tier society will be commuting to work on their bikes with a basket on the back or maybe a sissy bar for their mini-vehicle-pool'r. For any of you who've had the privilege of visiting counties like the Philippine, Taiwan, Singapore, Honk Kong, or any of the third world nations as I have, clearly understand what high fuel prices have to bring. I've seen and lived in these hell holes for two years and I'll be the first to tell you it isn't easy nor a pretty site. In those days it gave me a realty check on just how well I had it in the USA, but as I can see those visits were just a look into the future of what the good old USA is about to experience. For those of you who've never been there and lived in that environment you're in for a real treat. One you will never forget. My only question at this time is, how long it will be before Robin hood is born again. As far as I'm concerned the rich must understand there're consequences for being jack-asses and I for one will turn my head the other way when I witness justice served upon those who are worthy and will never testify to a wrong doing.
If you think this is a joke and it can't happen you are sadly mistaken. A 50cc Honda in good condition would be equivalent to having a top of the line Cadillac Escalade. Driving this sort of vehicle into the wrong side of town at the wrong time will cost you dearly and in today's society with todays immorality the frequence of this happen is greater that in other countries.
If you can do better by working elsewhere, please leave now and maybe save the job of someone who isn't complaining and wants to stay.
May 10, 2008 6:31 PM
Good idea, not get, troll or maybe it's that sucking sound I hear from your smack lippin going on. Time for you to face reality.
Try to think outside the box, at least a little bit. The solution to expensive gas is not one person per vehicle.
May 11, 2008 7:52 AM
And why would anyone want to be stuck in a car, truck, van or bike with people they don't know or even care about, taking a chance that the person behind the wheel is going to get you their alive. I don't think so. I trust myself but no one else with my life. The answer is hydrogen vehicle that get 50-100 MPG or maglev's that go 200 MPH with heavy armed security onboard.
May 11, 2008 6:22 AM
May 11, 2008 8:47 PM
I personally don't care if gas is $10/gal. Then the US would be highest cost worldwide. Who says we're no longer #1?
May 12, 2008 8:45 PM
I'm sure glad you're as smart as your are. You must be on welfare or social secueity.
May 12, 2008 8:45 PM
Speaking about being smart: it's "surely glad," "as you are," and "security."
May 12, 2008 8:45 PM
I'm sure glad we have people like you in society. It's shows just how stupid the people really are. Dipwips who say it's okay for gas to go to $10 a gallon must be stay home non working daddy's. What fools we have in the world.
Post a Comment