Get ready for more pain at the pump, oil prices are surging

[DigitalDrifter]

Seems like forever when Bush left office and we were paying $1.69 a gallon.

Oil prices surge after militants seize Iraqi cities

Anxiety is increasing over the possibility of disrupted production. We're in the gas-guzzling summer season, too.

Oil prices shot higher Thursday, after the seizure of two Iraqi cities by militants shook market confidence in the reliability of the country's crude exports.


The price of a barrel of Brent crude reached $112.29 on London's Intercontinental Exchange, just 10 cents below the 2014 high. U.S. WTI crude, traded on the*New York Mercantile Exchange, rose above $106 a barrel for the first time since September 2013.


Although very little of*Iraq's crude exports are yet affected by the attacks on Mosul and Tikrit, prices soared on concern that*violence could spread south*to where the vast majority of the country's production is concentrated.


"It's purely a fear-factor hitting right now," said Torbjorn Kjus, oil analyst at DNB Markets in Norway. "Right now it's $2 up, and it could easily go up more than that based on developments" such as a move of violence southward, he said.


Iraq's Oil Minister Abdul Kareem Luaiby, speaking at a meeting of the*Organization of the Petroleum Exporting Countries*in Vienna on Wednesday,*described Iraq's southern oil-producing sites*that include the export terminal at*Basra*as "very, very safe."


Commerzbank*analysts said Mr. Luaiby's statement "appears almost farcical" as the government in*Baghdadincreasingly appears to be losing control over wide areas of the country.


Iraq had its most productive postwar month*in February, pumping 3.6 million barrels of oil every day. Now production is around 3.3 million-3.5 million barrels a day, according to analysts.


Exports from northern Iraq have been halted for months because of damage to the pipeline that runs to the Turkish port of Ceyhan, cutting off some 250,000 barrels a day.


The nascent flow of oil from Iraqi Kurdistan hasn't yet been affected, but volumes are small and subject to objections by Baghdad, which sees them as a breach of sovereignty.

Oil prices surge after militants seize Iraqi cities- MSN Money

 

[Mr. H.]

Be glad WTI doesn't = Brent, as it should.

Plus keep in mind that domestic producers aren't paid WTI, but a heavily discounted price. In the Illinois Basin (IL/IN/KY) we're paid at an $8.40 discount. Some areas of the country are worse. The spread was $15 out west at one time.

And remember when oil hit $140/barrel in 2008? It took only a matter of months to collapse to $40.

 

[thereisnospoon]

Seems like forever when Bush left office and we were paying $1.69 a gallon.

Oil prices surge after militants seize Iraqi cities

Anxiety is increasing over the possibility of disrupted production. We're in the gas-guzzling summer season, too.

Oil prices shot higher Thursday, after the seizure of two Iraqi cities by militants shook market confidence in the reliability of the country's crude exports.


The price of a barrel of Brent crude reached $112.29 on London's Intercontinental Exchange, just 10 cents below the 2014 high. U.S. WTI crude, traded on the*New York Mercantile Exchange, rose above $106 a barrel for the first time since September 2013.


Although very little of*Iraq's crude exports are yet affected by the attacks on Mosul and Tikrit, prices soared on concern that*violence could spread south*to where the vast majority of the country's production is concentrated.


"It's purely a fear-factor hitting right now," said Torbjorn Kjus, oil analyst at DNB Markets in Norway. "Right now it's $2 up, and it could easily go up more than that based on developments" such as a move of violence southward, he said.


Iraq's Oil Minister Abdul Kareem Luaiby, speaking at a meeting of the*Organization of the Petroleum Exporting Countries*in Vienna on Wednesday,*described Iraq's southern oil-producing sites*that include the export terminal at*Basra*as "very, very safe."


Commerzbank*analysts said Mr. Luaiby's statement "appears almost farcical" as the government in*Baghdadincreasingly appears to be losing control over wide areas of the country.


Iraq had its most productive postwar month*in February, pumping 3.6 million barrels of oil every day. Now production is around 3.3 million-3.5 million barrels a day, according to analysts.


Exports from northern Iraq have been halted for months because of damage to the pipeline that runs to the Turkish port of Ceyhan, cutting off some 250,000 barrels a day.


The nascent flow of oil from Iraqi Kurdistan hasn't yet been affected, but volumes are small and subject to objections by Baghdad, which sees them as a breach of sovereignty.

Oil prices surge after militants seize Iraqi cities- MSN Money

These wild rpice spikes are not market based. They are due to speculation on the exchanges.
The part that most lay people do not understand is that most of the buyers have stop loss orders. Traders then buy "puts" which buy the market on the way down.
It's all a game to them.
Meanwhile the consumer gets fucked.
The moron in the White House probably sits there and says "good, the price of gas is rising. That'll teach those bastards to kowtow to my wishes and not use gas."...
Then as the price of gas rises the economy starts to tank. And of course Obama goes on the offensive. He will blame "Big Oil"....And with that his lockstep followers will go "yeah, what HE just said"...

 

[RoshawnMarkwees]

Of course, if this hack president and his AGW nazi agenda weren't stifling supply side here in the US the incidents in the ME wouldn't have as much of an impact.

 

[RoshawnMarkwees]

Seems like forever when Bush left office and we were paying $1.69 a gallon.

Oil prices surge after militants seize Iraqi cities

Anxiety is increasing over the possibility of disrupted production. We're in the gas-guzzling summer season, too.

Oil prices shot higher Thursday, after the seizure of two Iraqi cities by militants shook market confidence in the reliability of the country's crude exports.


The price of a barrel of Brent crude reached $112.29 on London's Intercontinental Exchange, just 10 cents below the 2014 high. U.S. WTI crude, traded on the*New York Mercantile Exchange, rose above $106 a barrel for the first time since September 2013.


Although very little of*Iraq's crude exports are yet affected by the attacks on Mosul and Tikrit, prices soared on concern that*violence could spread south*to where the vast majority of the country's production is concentrated.


"It's purely a fear-factor hitting right now," said Torbjorn Kjus, oil analyst at DNB Markets in Norway. "Right now it's $2 up, and it could easily go up more than that based on developments" such as a move of violence southward, he said.


Iraq's Oil Minister Abdul Kareem Luaiby, speaking at a meeting of the*Organization of the Petroleum Exporting Countries*in Vienna on Wednesday,*described Iraq's southern oil-producing sites*that include the export terminal at*Basra*as "very, very safe."


Commerzbank*analysts said Mr. Luaiby's statement "appears almost farcical" as the government in*Baghdadincreasingly appears to be losing control over wide areas of the country.


Iraq had its most productive postwar month*in February, pumping 3.6 million barrels of oil every day. Now production is around 3.3 million-3.5 million barrels a day, according to analysts.


Exports from northern Iraq have been halted for months because of damage to the pipeline that runs to the Turkish port of Ceyhan, cutting off some 250,000 barrels a day.


The nascent flow of oil from Iraqi Kurdistan hasn't yet been affected, but volumes are small and subject to objections by Baghdad, which sees them as a breach of sovereignty.

Oil prices surge after militants seize Iraqi cities- MSN Money

These wild rpice spikes are not market based. They are due to speculation on the exchanges.
The part that most lay people do not understand is that most of the buyers have stop loss orders. Traders then buy "puts" which buy the market on the way down.
It's all a game to them.
Meanwhile the consumer gets fucked.
The moron in the White House probably sits there and says "good, the price of gas is rising. That'll teach those bastards to kowtow to my wishes and not use gas."...
Then as the price of gas rises the economy starts to tank. And of course Obama goes on the offensive. He will blame "Big Oil"....And with that his lockstep followers will go "yeah, what HE just said"...

Speculation drives the price and that speculation is driven by circumstance, the least of which not being potential for supply side.
It's like a point spread in a football game. Sunday night the Patriots are ten point favorites for next week's game and bets are laid. On Monday, the coach announces that Brady is injured and won't play. The point spread shrinks to three and people settle bets to avoid greater losses. By Saturday the coach says Brady is healed and will play and the point spread goes back to ten. People have lost and gained money with no net change in circumstances but the game hasn't even been played yet.

 

[Rozman]

Who will get the blame when the price at the pump nears let's say $4.50-$5.00 per gallon?

 

[LiberalMedia]

Who will get the blame when the price at the pump nears let's say $4.50-$5.00 per gallon?

Bush. It's his fault that prices went that high under his term, and stayed over $3 per gallon in most, if not all, of the country. If he hadn't ruined the economy so bad, President Obama's recovery strategies would've succeeded more than they have. Thus far, he's been able to keep up from sliding into the bottomless pit of economic collapse and abject poverty; if Bush hadn't come along and fucked everything up for 8 years in a row, we'd be living in the greatest country on Earth right now, free of poverty, joblessness, and all wants.

 

[mamooth]

Another fine, fine chicken little thread from our conservative friends. It's what they do best. Which is why nobody pays much attention to them any more.

 

[Rozman]

Who will get the blame when the price at the pump nears let's say $4.50-$5.00 per gallon?

Bush. It's his fault that prices went that high under his term, and stayed over $3 per gallon in most, if not all, of the country. If he hadn't ruined the economy so bad, President Obama's recovery strategies would've succeeded more than they have. Thus far, he's been able to keep up from sliding into the bottomless pit of economic collapse and abject poverty; if Bush hadn't come along and fucked everything up for 8 years in a row, we'd be living in the greatest country on Earth right now, free of poverty, joblessness, and all wants.

Ah if Democrats had all the power we would be living in Utopia....

 

[Rozman]

And where were the Democrats while Bush had all this power and was destroying the country?

 

[Rozman]

Hiding under the bed and peeing their pants.

 

[Moonglow]

Of course, if this hack president and his AGW nazi agenda weren't stifling supply side here in the US the incidents in the ME wouldn't have as much of an impact.

We actually have a surplus of fuel....

 

[thereisnospoon]

Oil could rise another $15: Oppenheimer expert

 

[thereisnospoon]

Who will get the blame when the price at the pump nears let's say $4.50-$5.00 per gallon?

The left will follow Obama's marching orders and blame the oil companies.
The democrats will set upon this as an opportunity for democrat candidates. A committee of dens will once again propose one of those ridiculous windfall profits taxes. Not so such a tax would ever become a reality. The idea would of course be rejected by GOP lawmakers. Obama will go on national tv and tell the American people that the republicans are in bed with "big oil"...
Democrat window dressing.

 

[R.C. Christian]

I hope the terrorists burn every drop of it.

 

[HenryBHough]

Drove past a Shell station a few hours ago where the posted price was $4.039. That's making me feel better about the coming summer. Last time prices got above $4.50 the number of traffic-clogging RVs on the road fell to about 15% of normal.

Bring it on!

 

[RoshawnMarkwees]

Of course, if this hack president and his AGW nazi agenda weren't stifling supply side here in the US the incidents in the ME wouldn't have as much of an impact.

We actually have a surplus of fuel....

Because it costs too much. Duh.

 

[DigitalDrifter]

Who will get the blame when the price at the pump nears let's say $4.50-$5.00 per gallon?

Bush. It's his fault that prices went that high under his term, and stayed over $3 per gallon in most, if not all, of the country. If he hadn't ruined the economy so bad, President Obama's recovery strategies would've succeeded more than they have. Thus far, he's been able to keep up from sliding into the bottomless pit of economic collapse and abject poverty; if Bush hadn't come along and fucked everything up for 8 years in a row, we'd be living in the greatest country on Earth right now, free of poverty, joblessness, and all wants.

You're actually being serious ? You're going to put this under the "it's Bush's fault" category ?

 

[DigitalDrifter]

I went ahead and filled the tank last night on my diesel-pusher motorhome, afraid if I wait much longer I'll pay a lot more.

$620.00 to fill !!