Another record, Oil hits $127 a barrel.

[Bindare_Dundat]

Oil prices have hit a record just shy of $127 a barrel after Iran said it was studying a plan to cut crude output.

President Mahmoud Ahmadinejad said a proposal to reduce Iran's crude output was being reviewed by experts, Iran's Fars News Agency reported.

The report sent US light, sweet crude to a new high of $126.98. London's Brent crude rose to $124.01 a barrel.

Analysts doubted whether Iran would actually cut output but the report sent jitters through oil trading floors.

"That sounds like it would get people excited," said Peter Beutel, president of Cameron Hanover.

"We're in a market where anything bullish is going to be able to push the price higher."

Disruption

The price of crude oil only topped $100 a barrel at the start of this year.

Its rise since then has led to predictions that the commodity could hit $200 within the next six months.

A number of factors have combined to push oil on its recent record-breaking run.

There have been supply disruptions in Iraq, Nigeria and the UK's North Sea, while there has also been strong underlying demand from China, which is buying crude to fuel its economic boom.

At the same time, concerns about the US economy and a weak US dollar have made oil a more attractive investment.

There have been calls for greater supply by producers cartel Opec, which supplies 40% of the world's oil.

However, Opec has refused to call an early meeting to discuss the current high oil price, insisting that there is enough supply to meet demand.

[War-Horse]

Iran is just doing what OPEC does every day.....cuts supply to raise prices...increases to ward off inflation. But the second part is causing stagflation.

Mihgt as well have it hit $200.00 a barrel tomorrow and get it over with......the govt doesnt give a shit about its citizens.......

[Camel Jockey]

Why doesn't our government try and strengethen the dollar?

[Deicide]

Oil prices have hit a record just shy of $127 a barrel after Iran said it was studying a plan to cut crude output.

President Mahmoud Ahmadinejad said a proposal to reduce Iran's crude output was being reviewed by experts, Iran's Fars News Agency reported.

The report sent US light, sweet crude to a new high of $126.98. London's Brent crude rose to $124.01 a barrel.

Analysts doubted whether Iran would actually cut output but the report sent jitters through oil trading floors.

"That sounds like it would get people excited," said Peter Beutel, president of Cameron Hanover.

"We're in a market where anything bullish is going to be able to push the price higher."

Disruption

The price of crude oil only topped $100 a barrel at the start of this year.

Its rise since then has led to predictions that the commodity could hit $200 within the next six months.

A number of factors have combined to push oil on its recent record-breaking run.

There have been supply disruptions in Iraq, Nigeria and the UK's North Sea, while there has also been strong underlying demand from China, which is buying crude to fuel its economic boom.

At the same time, concerns about the US economy and a weak US dollar have made oil a more attractive investment.

There have been calls for greater supply by producers cartel Opec, which supplies 40% of the world's oil.

However, Opec has refused to call an early meeting to discuss the current high oil price, insisting that there is enough supply to meet demand.

In a way the American people have brought this upon themselves; through willful apathy, ignorance, self-content and a disregard for the 'other'. Sometimes one does indeed get what one pays for. Things that cannot go forever, don't and the American Empire cannot continue. The economic crisis which looms in the shadow of its collapse might just be the thing needed to wake the American people up from their self-satisfied, self-imposed and ever smug reverie.

[War-Horse]

Why doesn't our government try and strengethen the dollar?

Because its part of the plan to let it fail.  The North American Union is being pushed thru by the UN among others.    It is time for America to lose its wealth and be distributed among poorer nations, gauranteeing a "One World economy".

Things are gonna get worse.....

[Deicide]

Because its part of the plan to let it fail.  The North American Union is being pushed thru by the UN among others.    It is time for America to lose its wealth and be distributed among poorer nations, gauranteeing a "One World economy".

Things are gonna get worse.....

Perhaps...though I attribute it to imperialistic ambitions on the part of the USA.

[War-Horse]

Perhaps...though I attribute it to imperialistic ambitions on the part of the USA.

Many paths to the same end.       Alot of factors at work here.   Eitherway the elites are grabbing more of their share of americans money everyday....some are oblivious but they will have their turn soon.

[JasonH]

I can hardly wait for the day when the world no longer has a thirst for oil. However, it probably won't happen in our lifetime. 

[shootfighter1]

This is just plain bad.

[War-Horse]

You know if bush really wanted to use his new "Executive privledges" he would see that a crisis is occurring in america as to the costs of fuel and food.   

 The easy way out of this crisis is to temporarily regulate oil at $50.00 a barrel. 

 Even if a portion of the money we spend on the war was spent on the excess payment to the oil companies to cover americans, people would start spending again and the tailspin would end.

[24KT]

You know if bush really wanted to use his new "Executive privledges" he would see that a crisis is occurring in america as to the costs of fuel and food.   

 The easy way out of this crisis is to temporarily regulate oil at $50.00 a barrel. 

 Even if a portion of the money we spend on the war was spent on the excess payment to the oil companies to cover americans, people would start spending again and the tailspin would end.

You presume that he wants to do something about it. How can you be so sure? Where's the evidence?

[JasonH]

You know if bush really wanted to use his new "Executive privledges" he would see that a crisis is occurring in america as to the costs of fuel and food.   

 The easy way out of this crisis is to temporarily regulate oil at $50.00 a barrel. 

 Even if a portion of the money we spend on the war was spent on the excess payment to the oil companies to cover americans, people would start spending again and the tailspin would end.

Hasn't Bush and his family got interests in oil anyway? - it's in his favour if oil prices are rising - he couldn't care less about food prices.

[BayGBM]

This is what you voted for... or did you think two oil men were going to lower gas prices?