Oil soars above $71, hitting 2009 high

[Soul Crusher]

Oil soars above $71, hitting 2009 high
Jun 10, 6:39 AM (ET)

By GEORGE JAHN

VIENNA (AP) - Oil prices soared above $71 a barrel Wednesday to reach a 2009 high, as investors poured money into crude markets to protect themselves against the inflation risks posed by a weakening U.S. dollar.

Oil, which typically trades inversely to the dollar, has more than doubled in price in three months as traders also cheered news showing the worst of a severe U.S. recession is likely over. They brushed off data - such as a 9.4 percent U.S. unemployment rate in May - that suggest crude demand will remain weak. Even growing inventories have not checked crude's stellar rise.

Benchmark crude for July delivery was up $1.35 at $71.36 a barrel by noon in European electronic trading on the New York Mercantile Exchange. On Tuesday, it jumped $1.92 to close at $70.01.

"I wouldn't be surprised if we're testing $80 in a week or two," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "The momentum right now is too strong."

A weaker U.S. dollar and expectations massive fiscal stimulus spending could spark inflation have bolstered the market.

The Energy Department's Energy Information Administration said Tuesday that crude prices will likely average $67 a barrel in the second half of 2009, about $16 higher than the first six months of the year. A month ago, the EIA's price-per-barrel forecast for the second half of 2009 was $55.

The Energy Department also said global consumption of oil, which has fallen by nearly 2 million barrels per day this year, will begin to rebound in 2010 as the economy recovers.

Wednesday's release of petroleum inventory data from the EIA could provide additional insight about crude demand. Analysts expect a rise of 800,000 barrels.

The upward march of benchmark crude pulled related energy prices higher as well.

In other Nymex trading, gasoline and heating oil for July delivery both rose by more than 2 cents to $1.99 a gallon and $1.83 a gallon. Natural gas for July delivery was up by more than 10 cents, at $3.83 per 1,000 cubic feet.

In London, Brent prices rose in tandem with benchmark crude, gaining $1.19 to $70.81 a barrel on the ICE Futures exchange. Trader and analyst Stephen Schork noted that "for the thirteenth time in the last 15 sessions,London crude for July delivery posted a new year-to-date high."

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Associated Press writer Alex Kennedy contributed to this report from Singapore.

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$4.00 a gallon here we come. 

[24KT]

Oil soars above $71, hitting 2009 high
Jun 10, 6:39 AM (ET)

By GEORGE JAHN

VIENNA (AP) - Oil prices soared above $71 a barrel Wednesday to reach a 2009 high, as investors poured money into crude markets to protect themselves against the inflation risks posed by a weakening U.S. dollar.

...{snipped for brevity}...
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$4.00 a gallon here we come. 

Don't say you weren't warned.

You can blame iit on Obama, ...but these predictiosns were made long before Obama got into office.

Gas again crossed over the $1 per litre mark again overnight. It went to $1^.03 per litre  which is $3^.90 per gallon

http://www.getbig.com/boards/index.php?topic=269228.0

[Soul Crusher]

Don't say you weren't warned.

You can blame iit on Obama, ...but these predictiosns were made long before Obama got into office.

Gas again crossed over the $1 per litre mark again overnight. It went to $1^.03 per litre  which is $3^.90 per gallon

http://www.getbig.com/boards/index.php?topic=269228.0

Investors are going into commodities and dumping the dollar.

[24KT]

Investors are going into commodities and dumping the dollar.

They've been doing that for years. Investors have also been taking delivery of oil barrels, parking them on ships

[Soul Crusher]

They've been doing that for years. Investors have also been taking delivery of oil barrels, parking them on ships

Actually, you are 100% correct.  I took my jet ski out on the Hudson River last weekend.  Just north of the GW Bridge, there were no less than 10 HUGE supertankers just sitting there that said on the side "energy".  its obvious what they were. 

They were just parked there, kind of wierd actually.

They seemed extremely vulnerable to a small craft attack.

[24KT]

Actually, you are 100% correct.  I took my jet ski out on the Hudson River last weekend.  Just north of the GW Bridge, there were no less than 10 HUGE supertankers just sitting there that said on the side "energy".  its obvious what they were. 

They were just parked there, kind of wierd actually.

They seemed extremely vulnerable to a small craft attack.

They are parked like that in ports all throughout the world.

btw: You actually jet ski in the Hudson? you know water can be absorbed through your skin right?
have you been growing any unusual body parts lately... a wierd misshapen arm growing out your obliques maybe?

[Soul Crusher]

They are parked like that in ports all throughout the world.

btw: You actually jet ski in the Hudson? you know water can be absorbed through your skin right?
have you been growing any unusual body parts lately... a wierd misshapen arm growing out your obliques maybe?

I usually set off out of Yonkers on the Hudson River, go down and turn into the Harlem River, which then opens into the East River down to the Brooklyn Bridge around downtown  NYC. 

Then I go to Staue of Liberty and then to Liberty Park in NJ to fuel up and head back up the Hudson River to Yonkers.   

Yes, the water is disgusting. 
I go into the Harlem River an

[Al Doggity]

Investors are going into commodities and dumping the dollar.

This always happens during recessions. Flight to safety.

This report is from a few days ago. Prices dropped yesterday. Partially because the dollar strengthened on world markets. Partially due to fundamentals not supporting the bullish market. Most analysts are expecting a bigger correction.

[Soul Crusher]

This always happens during recessions. Flight to safety.

This report is from a few days ago. Prices dropped yesterday. Partially because the dollar strengthened on world markets. Partially due to fundamentals not supporting the bullish market. Most analysts are expecting a bigger correction.

Oil will continue to go up over time.   

[Al Doggity]

Oil will continue to go up over time.   

Most prices tend to increase over time. Will oil contine rising at it's current rate? No. Is the market due for a massive correction? Yes.

[Soul Crusher]

Most prices tend to increase over time. Will oil contine rising at it's current rate? No. Is the market due for a massive correction? Yes.

It depends on China and India's consumption rate. 

[Al Doggity]

Those barges you see in the Hudson River... what makes you think that's only happening in the western hemisphere? China is stockpiling every commodity it can get it's hands on. At any given time, they've got hundreds of barges idling.

China's demand for oil is fueled by the world economy- specifically America.

[Soul Crusher]

Those barges you see in the Hudson River... what makes you think that's only happening in the western hemisphere? China is stockpiling every commodity it can get it's hands on. At any given time, they've got hundreds of barges idling.

China's demand for oil is fueled by the world economy- specifically America.

As other economies increase, it will not only be america that fuels oil consumption.  Many countries are sick of living in a thiord world status and want cars, goods, etc, too. 

[headhuntersix]

Which is why we ought to be drilling our own but douchbag Barry and the Left would rather have us drive deathbox cars to work and sink our economy further.

[Al Doggity]

As other economies increase, it will not only be america that fuels oil consumption.  Many countries are sick of living in a thiord world status and want cars, goods, etc, too. 

China is an export nation. The majority of their oil costs stem from the production of goods. What you've described is something that will take place more gradually.

Like I said, prices probably aren't going to return to last year's high soon. The dollar will probably continue to strengthen which will have either an adverse or stabilizing affect on the world oil market.

[Soul Crusher]

China is an export nation. The majority of their oil costs stem from the production of goods. What you've described is something that will take place more gradually.

Like I said, prices probably aren't going to return to last year's high soon. The dollar will probably continue to strengthen which will have either an adverse or stabilizing affect on the world oil market.

Where I am, a gallon is already almost $3.00 for regular. 

[Hereford]

$3.00 and skyrocketing here too.

[GigantorX]

China is an export nation. The majority of their oil costs stem from the production of goods. What you've described is something that will take place more gradually.

Like I said, prices probably aren't going to return to last year's high soon. The dollar will probably continue to strengthen which will have either an adverse or stabilizing affect on the world oil market.

The dollar was "strengthening" several months ago when investors fled to it for safety. The index since then has steadily eroded. Whatever Geithner and Obama are talking about concern a "strong dollar" policy is bullshit.

Hello devaluation and goodbye reasonable oil prices.

[kcballer]

Oil will always be a volatile commodity now.  Investors realise the ability to basically set their own prices due to whatever circumstances they desire.  Bomb goes off in Iraq? Raise prices.  Terrorist threat? Raise prices.  Someone sneezes? Raise prices.  They level out slowly then when they want to milk us again they make up another reason and raise it again.  It's a cartel. 

[Hereford]

Oil will always be a volatile commodity now.  Investors realise the ability to basically set their own prices due to whatever circumstances they desire.  Bomb goes off in Iraq? Raise prices.  Terrorist threat? Raise prices.  Someone sneezes? Raise prices.  They level out slowly then when they want to milk us again they make up another reason and raise it again.  It's a cartel. 

Totally agree.

It is amazing some of the 'events' that trigger a drastic rise in gas prices.

My favorite is when gas shot up $1.50 in a week here in CA because the hurricane was predicted to hit the gulf coast and shut down refineries for a few days. Amazing.... considering A) Last I heard there was like a 80+ day reserve anyways and B) we don't get any of our oil here thru the gulf coast.

It was just a nice excuse to jack up prices for awhile. They it takes a month to come back down at all after a bad day or two, and never really seems to go back to the origional price.

[sync pulse]

Grains and silver does what oil does...

[sync pulse]

Go to the Library and read the New York Times on microfilm 1974 through 1980 to find out what happens next.

[big man]

Oil will always be a volatile commodity now.  Investors realise the ability to basically set their own prices due to whatever circumstances they desire.  Bomb goes off in Iraq? Raise prices.  Terrorist threat? Raise prices.  Someone sneezes? Raise prices.  They level out slowly then when they want to milk us again they make up another reason and raise it again.  It's a cartel. 

Very much agreed. Always some excuse to raise the prices. $2.78 here, and I know it's going up. Time to hop back on the bike

[24KT]

Very much agreed. Always some excuse to raise the prices. $2.78 here, and I know it's going up. Time to hop back on the bike

That's not the only thing you could do. 

[Soul Crusher]

That's not the only thing you could do. 

Let me guess - buy gas pills???