In case you didn't see this coming, the price of oil is rising now because of the floods in KS, OK and TX. Oil traders are blaming "concerns about violence and kidnappings in Nigeria," but it's funny how conveniently those "concerns" appeared right after a refinery got flooded in Kansas.

That's like an orange juice factory in KS getting flooded, and causing the price of raw oranges in China to go up. One is completely unrelated to the other, but that doesn't really matter when oil producers, refiners, and futures traders can all make money without fear of prosecution under the RICO statutes.

But Paris went to jail, so I suppose there is justice, after all.


Gas Prices Rise, Reversing Recent Trend
Friday July 6, 11:16 am ET

NEW YORK (AP) -- Gas prices rose overnight for the first time in more than a month as the closure of a Kansas refinery sent prices in the center of the country sharply higher.


It's unclear how much prices will rise. Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service, said the overnight increase is almost all attributable to price jumps in the Plains and front-range Rockies states. Supplies there have been cut by the flooding and closure of a refinery in Coffeyville, Kan., that can produce 2.1 million gallons of gasoline per day.

"They just lost about one-seventh of their gasoline supply for the summer," Kloza said.

However, if retail gas prices are destined to follow futures higher, then they're likely to keep rising. Oil and gasoline futures rose Friday on continuing concerns about violence and kidnappings in Nigeria and a sense that domestic refiners are struggling to produce enough gas.
Light, sweet crude for August delivery gained 85 cents to $72.66 a barrel on the New York Mercantile Exchange. August gasoline rose 1.45 cents to $2.2988 on the Nymex.

 

well said.
--doug

 

 

And once they get the ball rolling, who's to stop them?


$80 a barrel prediction as oil soars again


Friday July 13, 2007
The Guardian


The price of oil jumped to an 11-month high yesterday, moving even closer to record levels hit last summer as fears mounted over shortages in supply.

Speculation in the world's most actively traded commodity, rapidly rising demand and reports that production would slow over the next five years pushed Brent crude up to $77.07 briefly during early-afternoon trading, within $2 of the all-time high of $78.65 set last August.

 

Oil at $200 a barrel would be the best solution to global warming. Why complain?

 

Yup - the higher the better. We are definitely headed for $80 in the short term and much higher over the next 5 years as oil producing countries scale back due to their own internal demand and diminishing output. Mexico's Cantarell (their largest field) is rapidly declining, as did the North Sea, and Saudi Arabia is not producing as much this year as last.

By the way, do not confuse gas prices with oil prices. Gas prices are responding to constraints in refining capacity, oil prices are a result of skyrocketing world demand and not enough production.

 

I've heard that, too. I just don't believe it. Production, refining, transport, hurricanes, terrorism ....... it's all a shell game.

As a hybrid owner, I'm not concerned about the price of gas for my car. But I'm really p-o'd at the inflationary effect high gas prices are having on everything else. We're all paying more -- even the price of food is rising at 7% per year.

But I agree with the previous post that said 'the higher the better.' Hybrids pretty much insulate us from gas price spikes.

I just returned from a 2,300 mile trip -- Dallas to Detroit and back. Total drive time was 32 hours, giving me an average speed of 72 mph (which is darn quick!), and I averaged just over 45 mpg, burning 51 gallons of gasoline for a total cost of $153.

More money for me, less for OPEC.

 

THE key.