Oil passes $80

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kiepie

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Sept. 12 (Bloomberg) -- Crude oil rose to a record $80.18 a barrel in New York after supplies dropped the most this year.

U.S. oil inventories fell a greater-than-expected 7.01 million barrels to 322.6 million last week, the Energy Department said today. Prices also rose after OPEC said yesterday it would increase production by 500,000 barrels a day, less than is needed to meet a seasonal rise in demand.

``We've shrugged off OPEC's offer of 500,000 barrels,'' said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. ``There's a tropical storm in the Gulf and inventories posted a huge decline.''

Crude oil for October delivery rose $1.68, or 2.2 percent, to settle at $79.91 a barrel at 2:54 p.m. on the New York Mercantile Exchange, a record close. Futures also touched the highest intraday price since trading began in 1983. The previous record of $78.77 was reached on Aug. 1.

The average cost of oil used by U.S. refiners averaged $37.48 a barrel in March 1981, or $84.73 in today's dollars, according to the Energy Department. Prices rose from 1979 through 1981 after Iran cut oil exports.

Brent crude oil for October settlement rose $1.30, or 1.7 percent, to $77.68 a barrel on the London-based ICE Futures Europe exchange, the highest since Aug. 7, 2006.

A 2.7 million barrel drop in oil supplies was expected, according to the median of responses by 17 analysts surveyed by Bloomberg News before today's report.

``Seven million barrels is an awful lot of oil to lose in one week,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. in Wakefield, Massachusetts. ``There's a feeling that OPEC waited too long to make this move.''
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Well that's a rise in the petrol price, that has a rise on the food prices, that causes inflation to sky rockets. And an extra 0.50% hike at the next MPC meeting... :(

Won't feel sorry for the buggers at $30 ever again!! :mad:
 
kiepie said:
Well that's a rise in the petrol price, that has a rise on the food prices, that causes inflation to sky rockets. And an extra 0.50% hike at the next MPC meeting... :(

Won't feel sorry for the buggers at $30 ever again!! :mad:
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Some KY anyone?

The fat in my budget is going quickly!:(
 
The guys that is hit the hardest is those that got the house they "just" could afford along with the car.

That extra R750 they need to couch up is going to come from where? :rolleyes: :(
 
OPEC are silly, every day they make it more and more affordable to use alternative power sources. The day is coming when they will start to regret this abuse.
 
Abe said:
OPEC are silly, every day they make it more and more affordable to use alternative power sources. The day is coming when they will start to regret this abuse.
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ROFL. And you think that governments will go along with that? Only a few developing world governments have alternative fuel programs in place. The SA government makes billions from fuel - why rock the boat? The status quo will remain the same; just like the telecoms industry.
 
well the pe metro is in an advanced stage with tenders etc for wind power... after all it is the windy city... lol

Mostly oversea's companies, but govement made it legal for alternative energy suppliers(other than eskom) to bid

Can you say electric car :)
 
Personally, I think skyrocketing oil prices are great. Bring on the alternatives.
 
BobbyMac said:
ROFL. And you think that governments will go along with that? Only a few developing world governments have alternative fuel programs in place. The SA government makes billions from fuel - why rock the boat? The status quo will remain the same; just like the telecoms industry.
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It makes alternatives that were previously uneconomical suddenly become worthwhile. There is already a local firm making fuel from plants. Solar panels are becoming more efficient. No one would have sponsored this work if OIL was dirt cheap as it would not be worth their while.
 
BobbyMac said:
ROFL. And you think that governments will go along with that? Only a few developing world governments have alternative fuel programs in place. The SA government makes billions from fuel - why rock the boat? The status quo will remain the same; just like the telecoms industry.
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And why on earth can government(s) not make tax money on bio-fuels?
They will just slap a RAF levy on biofuels.
 
Abe said:
OPEC are silly, every day they make it more and more affordable to use alternative power sources. The day is coming when they will start to regret this abuse.
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They already did in a way, by pushing up the price they made it more viable for other countries to invest in oil infrastructure and export oil, saw figures a while ago where it cost the Saudis and other ME countries around US$2-3 to extract a barrel of oil compared to $15 in places like Russia, even higher in Canada IIRC. Point is if they'd kept prices low they'd have more control as they'd still be the main producers.

There seems to be speculation that OPEC has revised its price target to around $70-75 a barrel, unofficially of course, so not sure how much better it'll be getting. :mad:
 
Riding a bicycle, and electric bicycle (which I'll be getting soon), riding a motorbike or scooter, using public transport, carpooling, walking.

But I actually meant alternative energy.
 
BlueCollar said:
Riding a bicycle, and electric bicycle (which I'll be getting soon), riding a motorbike or scooter, [-]using public transport[/-], carpooling, walking.

But I actually meant alternative energy.
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This is S.A after all ;)
 
dlk001 said:
I suspect even if the alternative was "water", somebody would monopolies it. Bush would make sure he owns all the rights to atmospheric water vapor that is deposited on the earth's surface.
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As long as its clean and it's available to the public at prices comparable to oil, I really don't care if anyone's monopolising it.

Alan, high oil prices are going to affect every country, so it will encourage more people around the world to use public transport.
 
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