$80 a barrel prediction as oil soars again

[jpak]

http://business.guardian.co.uk/story/0,,2125371,00.html

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.

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[whistle]

1. A fringe result of the 22 Arab state union and Iraq meeting discussions this week?

[Warpy]

2. Meanwhile, the dollar continues a slow decline

against other major currencies, thus ensuring high prices per barrel for the US on the spot market.

Anybody who buys an SUV now had better be wealthy.

[melody]

4. exactly

And meanwhile, George rakes it in.

[rodeodance]

3. there was a sudden jump of 11c/gal in my area early this week.

[Tempest]

5. Wait a minute

Aren't we being told that gasoline prices will hold steady or decline?

How is this possible when the price of oil is skyrocketing?

[populistdriven]

6. because $1.20 of the price of US gasoline is pure speculation

and the speculators predict increasing supplies of gasoline while the cost of oil is going up so the oil costs won't increase the gasoline prices until gasoline supply weakens or the built-in speculative costs are surpassed by the oil cost.

[Javaman]

8. Because some oil exec needs an addition to his mansion. nt

[Maven]

7. "production would slow over the next five years"

and every year thereafter.

[Javaman]

9. so let's see...

oil is up, consumer spending is down, foreclosures are waaaaay up, personal saving is waaaaay down and food prices are going up but moron* says that the economy is good.

whatever it is, I want what ever moron* is drinking.

[GliderGuider]

10. Brent at $79.64. How about them apples?

A new record high, and not a hurricane in sight.

The air's starting to get mighty thin up here.