Today is the first day of summer and you know what that means...

[Ninong]

$60/barrel oil!

I think we will see $60 a barrel oil by early this summer. We may see $75 a barrel oil by sometime next summer.

That was my prediction on March 25, 2005 in this thread (post #11): Gas prices at ~$2.00 a gallon may be a good thing

Oil broke through the $60/barrel barrier yesterday:

Yeooowww! Crude oil crossed $59 a barrel today (6/20/05). A whole lot of people anxiously wondered if $60 a barrel wasn't far enough.

When the July contract closed at a record $59.37 and the August contract at $59.78 after touching $60, traders seemed to breathe a sigh of relief. The major indexes, which had been down virtually all day, ended the day with only a small loss. http://moneycentral.msn.com/content/...es/P121197.asp

[Ninong]

July crude traded as high as $59.95 today but it closed near $59/barrel.

[Reefland]

Not only is oil outrageous but it's darn hot outside too!!!

[dougc]

I just read this morning that the world used 30 billion barrels of oil last year, but new discoveries totaled only 13 billion barrels. It is inevitable that prices will continue to rise, at least until it throws the world into a recession.

On a brighter note, my neighbor just bought a Toyota Prius, so I got the grand tour last weekend. Definitely the must-have car for environmentally-concious technogeeks. Its not as efficient as my commuter vehicle, though. Mine gets me to work on a banana and a bowl of cereal. A bicycle is a wonderful thing and it might save me a little on my taxes soon. There is a pending bill in NJ to grant a $.10/mile deduction on state taxes for bicycle commuters. I pedal about 2000 miles a year to and from work, so the $200 deduction won't exactly line my pockets with cash, but I'll take all the help I can get.

[Ninong]

Three days ago the August contract traded above $60/barrel and the stock market didn't skip a beat. Today it traded above $60/barrel and the Dow dropped 166 points! Yeow!

Meanwhile, all the American and British oil company execs will be meeting in secret in London next week to carve up Iraq's reserves: http://www.thelondonline.co.uk/theli...?articleID=437

[Poseidon]

Uh.... Wasn't that the point of the war in the first place? OIL? Oh wait I remember now, it was WMD. Wrong 3 letters!

I think the US and the Brits have a legetimate claim to at least some of the oil, personally I would rather just leave the Iraqis to themselves and let them sell it to us for cheap!

[Ninong]

Now that oil has crossed the psychological barrier of $60/barrel, it's picking up steam. Today August crude hit $60.95/barrel and December crude hit $62.35/barrel. Crude is trading above $60/barrel every month from now through the end of 2006.

I'm surprised the stock market hasn't reacted even more negatively than it has so far. It's holding up pretty well under the circumstances.

[Poseidon]

Forgive my ignorance, but why are they discussing oil for 2006? I guess I don't understand how oil is priced so far out in advance.

[Ninong]

Forgive my ignorance, but why are they discussing oil for 2006? I guess I don't understand how oil is priced so far out in advance.

These are futures contracts. The front contract right now is August because the July contract expired last Tuesday. These are the prices per barrel that are being bid for oil for delivery at a future date.

[Ninong]

What it all means is that the price of gasoline is going up!

Whatever the record highs were in your area during the past several months, figure that the new highs will be higher. Soon. Like within three months, or less.

[Poseidon]

Ahhhh I see! So demand is a educated guess. Looks like I am going to start riding my bike, to work.

[zhenya]

I think I'll buy me a horse for my retirement( I can't possibly ride a bike for long with my back problems), oats are probably cheaper than oil by far.

Prices at the pumps for regular unleaded gasoline are 2.20 and 2.50 for the higher octane.

[Ninong]

Well at least it has taken a breather so far today. After closing at $60.54 yesterday, crude is now trading just below $60 and that has been encouraging enough for the stock market to move up a little.

[Ninong]

Profit-taking has dropped the price of crude below $59/barrel and the stock market has responded positively.

[Ninong]

Crude oil closed at $61.28/barrel today and the Dow promptly dropped 101 points. Heating oil and unleaded gasoline also hit new record highs.

No telling what might happen next week if Hurricane Dennis strengthens to Category 3 or greater and enters the Gulf of Mexico. Crude could easily hit $63/barrel.

[schrocat]

http://www.globalenergyequipment.com...lants&Count=75


Some good deals to be had!!!!

I'm a Republican so we can get a discount if I show my card.

[Ninong]

I don't want a coal plant. They're so last century!

How about this place? Think your card would get us comped there? It works for Tom DeLay.

[schrocat]

No...
I didn't donate enough this year to get comped at Signatures.

At my donation level I only get complimentary valet parking and the honor of being "I.T. Technician of the Year" with 4,000 other Rep. donors.

[Ninong]

Oil hit $63.99/barrel today!


The Associated Press
Updated: 4:01 p.m. ET Aug. 8, 2005

WASHINGTON - Oil prices jumped to a new high near $64 a barrel on Monday, reflecting the market’s persistent uneasiness about strong demand, tight supplies and a slew of threats to output around the globe.

Light, sweet crude for September delivery rose as high as $63.99 a barrel on the New York Mercantile Exchange. The contract settled $1.63 higher at $63.94 — the peak close since Nymex trading began in 1983.


http://www.msnbc.msn.com/id/5612507/

P.S. -- Remember way back in 1998 when oil was $12.72/barrel? The good ole boys in Houston were not happy about that. They sure were glad when Clinton left office and one of their own took his place. Some folks asked Dubya if he would release some oil from the federal strategic reserves to help lower the price a little. Heck, no! Are you crazy? Instead, he's been adding new oil to the reserves while the prices are sky high. He sure knows how to treat his friends!

Hope you guys are still holding onto your oil stocks.

Amex index of oil company stocks, 3/21/03 to 8/10/05: http://moneycentral.msn.com/investor...bol=%24XOI%2eX Nice to see the War in Iraq has been a complete success in at least one area.

[Ninong]

President Bush signed the new Republican energy bill today. It provides billions of dollars in tax credits to the oil companies to add new refining capacity, something they haven't done in more than two decades, and to help cover their exploration expenses. This will have no near term effect on the price of oil.

Yep, oil prices are sky high and the oil companies are making money hand over fist -- more than they ever made in history -- but we have to pay them look for oil and to build new refining capacity.