Oil prices rise above $92 a barrel

[peejay 327]

Oil prices rise above $92 a barrel

By THOMAS HOGUE

Associated Press

BANGKOK, Thailand — Crude oil prices spiked above $92 in Asia today on growing tensions in the Middle East and renewed concern about oil supplies.

Lebanese troops fired on Israeli warplanes Thursday, and while a conflict between Israel and Lebanon would not directly affect oil supplies, traders have become increasingly concerned that any conflict in the Middle East would envelop Saudi Arabia and Iran.

The United States announced new sanctions against Iran Thursday, targeting the elite Revolutionary Guards, which Washington accused of backing Shiite militants in Iraq. A confrontation between the world's largest oil consumer and its fourth largest oil producer could upend markets.

Parallel to fears of a broader conflict in the Middle East were new oil supply concerns.

"The market is really quite worried about supply," said Tetsu Emori, commodity markets fund manager at ASTMAX Futures Co. in Tokyo. "Oil is quite imbalanced. It is quite tight."

Light, sweet crude for December delivery rose $1.26 to $91.72 a barrel in electronic trade on the New York Mercantile Exchange by late afternoon in Singapore. It briefly rose to a new trading record of $92.22 during Asian trading.

The Nymex crude contract jumped $3.36 to settle at $90.46 a barrel Thursday in the U.S., closing above $90 a barrel for the first time.

The combination of supply worries and geopolitical concerns has pushed crude oil prices up more than 7 percent since Tuesday.

Prices jumped sharply Wednesday after the Energy Information Administration reported oil inventories had fallen 5.3 million barrels last week when analysts had expected growth of 300,000 barrels.

That report reversed a three-day downward price trend, and put energy traders back in a bullish mood, analysts said.

On Thursday, Organization of Petroleum Exporting Countries Secretary General Abdalla el-Badri told The Wall Street Journal Asia that the cartel is not talking about boosting production by 500,000 barrels. Those comments countered rumors that Saudi Arabia is pushing for another production increase after pressuring the group into one of similar size earlier. That boost goes into effect Nov. 1.

And while U.S. crude stocks fell to a nine-month low last week, Dow Jones Newswires reported that Oil Movements, a company that tracks oil tanker traffic, said the extra crude shipments from OPEC members next month will grow more slowly than anticipated.

Energy traders also remain concerned a threatened incursion by Turkish armed forces into Iraq in search of Kurdish rebels would cut oil supplies out of northern Iraq. Turkey warned Thursday that U.S. objections will not stop its troops from crossing into Iraq to pursue Kurdish separatists, while a steady stream of U.S.-made Turkish fighter jets roared across the skies along the border.

December Brent crude rose $1.41 to $88.89 a barrel on the ICE futures exchange in London.

Nymex heating oil futures rose 1.79 cents to $2.4263 a gallon (3.8 liters) while gasoline prices added 2.89 cents to $2.2647 a gallon. November natural gas futures fell 3.8 cents to $7.150 per 1,000 cubic feet.

http://www.chron.com/disp/story.mpl/headli...iz/5244699.html

[Geist 0]

In other news, spot gold prices also rose above $780.

Remember kids, it's not oil or gold prices that are rising, but the value of the dollar that is falling.

[stuartx13 3]

Remember that movie Phantom Menace sound about the same a way to jack the price.

[Jasman0717 9]

Ugh Guess the Dodge at 10mpg might have to go. Naw, love the comfort too much

[Ban Hammer 14,300]

Ugh Guess the Dodge at 10mpg might have to go. Naw, love the comfort too much

that's one thing i never liked about dodge - low gas mileage.

[Jasman0717 9]

Ugh Guess the Dodge at 10mpg might have to go. Naw, love the comfort too much

that's one thing i never liked about dodge - low gas mileage.

It does pretty good on the road, actually got about 24 when we went on our trip but in town it sucks. Guess I should start riding my bike to work

[peejay 327]

In other news, spot gold prices also rose above $780.

Remember kids, it's not oil or gold prices that are rising, but the value of the dollar that is falling.

Remember too, Young Grasshopper, we're paying for the gasoline in dollars at the pump.

And more than likely we aren't getting raises in pay to compensate for the weak dollar.

What's the point? We're getting screwed!

[almaty 19]

In other news, spot gold prices also rose above $780.

Remember kids, it's not oil or gold prices that are rising, but the value of the dollar that is falling.

Remember too, Young Grasshopper, we're paying for the gasoline in dollars at the pump.

And more than likely we aren't getting raises in pay to compensate for the weak dollar.

What's the point? We're getting screwed!

excellent point brother peejay..i agree....