Oil hits $117 after Nigerian pipeline attack

[robertpaulsen]

Source: CNN

NEW YORK (AP) -- Retail gas prices set new records Friday on their seemingly relentless march toward $3.50 a gallon, and diesel prices pushed further above $4 a gallon.

Oil futures, meanwhile, surged to a new record over $117 a barrel after a militant group in Nigeria said it had sabotaged a major oil pipeline operated by a Royal Dutch Shell PLC joint venture and promised further attacks on the country's petroleum industry.

At the pump, the national average price of regular gas rose 2.7 cents overnight to a record $3.445 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. Diesel fuel added 2.2 cents to a record national average of $4.168 a gallon.

The spike in the cost of fuel is hurting consumers already feeling the effects of a slowing economy, a sluggish job market and falling home values. Soaring prices of diesel, which runs most of the world's trucks, trains, ships and heavy equipment, is a major factor pushing food prices higher.

Read more: http://money.cnn.com/2008/04/18/markets/oil.ap/index.htm

[DS1]

1. Remember the screaming about 40 dollars a barrell was all Clinton's fault

Luxury, those days

[Sabriel]

2. Oil hits $150 after someone decides to screw us even more.

There, that's more like it.

[Tandalayo_Scheisskopf]

3. I have this little thought in my head.

It goes: Wealthy oil investors, like a hedge fund or two, funneling money and arms to disgruntled Nigerian pipeline-blower-uppers, whereupon...

Well, you surely know how this tune ends.

[Nickster]

4. I think it's a perfect storm of scumbags right now. Add in how OPEC has a gun to our head with

production and cutting back output. Everyone makes money, everyone's happy. Why isn't energy Independence a national security issue again?

[bulloney]

11. 'Cause we're too worried about lapel flag pins and if Rev. Wright loves our country.

Good lord! Don't you listen to Charlie Gibson and George Snuffalupugus?

[tama]

20. Why isn't energy Independence a national security issue again?

Because allready much too high in the population overshoot and still maniacally clinging to growth paradigm. There is little else left than denial and then die-all (sorry for the bad rhyme attempt! ;))

[legin]

26. Yup

To have a threat exist you have to cause some trouble occasionally.

Then the oil market rises to account for the 'perceived threats'.

Measuring risk is an inexact science and you tend to err on the side of caution.

As long as the oil price rise for the 'perceived threats' is greater than the actual damage you do then you are making money.

[nichomachus]

5. Aw geez

Retail gas prices set new records Friday on their seemingly relentless march toward $3.50 a gallon,

Regular gas in my neighborhood has been $3.79 for over a week now. I'd love to see $3.50.

[orleans]

6. i just saw two stations with $3.75/gal & 1 station at $3.85.

i'd like a reporter to ask the fuckhead to take a guess as to how much gas & oil costs.

[SpiralHawk]

9. It's $3.60 around here, up 20 cents from yesterday

Thanks a panload, oil-republicons. You are at ultimately at fault, and no one will forget republicons + oil cronies = shitheap for America.

[orleans]

18. what state are you in? n/t

[Juneboarder]

7. San Diego, CA

The cheapest you can find gas here now is $3.79/gallon at Costco. The majority of stations are at $3.89 or higher with some at $4.05 for regular unleaded "87" and $4.45 for Diesel. When is the madness going to stop? Maybe when the war machine leaves office...

[kiranon]

8. I hope no one significant sneezes or the price will go still higher.

[ohio2007]

30. Royal Dutch Shell = Geert Wilders..........hmmmmm

original article is thin on why the pipeline needed to be blown up, not to mention this excerpt


snip
More than 1,600 Dutch soldiers are deployed in Afghanistan as part of the NATO-led International Security Assistance Force (ISAF) which is fighting the Taliban insurgency.

The Dutch government decided in November to extend the mission until late 2010.
snip
http://www.alarabiya.net/articles/2008/04/18/48527.html




I blame the DUTCH 100 %

/sarc

[truthisfreedom]

10. So sickening.

[BeHereNow]

12. Remember the DUers who called us "doom and gloomers?" a few years ago?

Many of us attempted to warn the GP what was in store,
we were ridiculed and attacked for our warnings.
Where are they now?
In GDP indulging in the delusion that Hillary or Obama will save us?
Right- it's going to get worse before it gets worse.
BHN

[robertpaulsen]

17. A few years ago, $55 a barrel for oil was expensive.

Now double that and you're still $7 short.

GDP is good for a laugh. I think Peak Oil is the reason Gore is staying out of the fray. Once the full extent is understood by John and Jane Public, we may see him run. But that won't be until 2012.

[tama]

21. Yeah

Being a Kassandra sucks, doesn't it! :D

Only solace, and let's not belittle it, is when you get say: told ya so!

[daleo]

13. Peak Oil?

This is the kind of thing you would expect, if peak oil were the correct hypothesis.

[BeHereNow]

14. More like peak GREED...

The global elite are going in for the kill.
Make no mistake about it.

BHN

[tama]

24. Peak FEAR

When the food riots have allready started and are spreading like fire, global elite are going for the peak fear. Have-mores have more to loose, more to fear. Those of us who have lost everything - including hope - have no fear.

Make no mistake about it. Viva la revolucion!

[OKthatsIT]

36. Peak fear. Keep those Cointelpro Ops going till its hits $4-$5.

Excuses, excuses.

[tama]

22. Don't say? ;) n/t

[NikolaC]

15. Gas Was Up To $1.20 A Litre Here

It's become an "effing" sick and twisted joke. Gee, I wonder what catastrophe is going to cause the price of oil to go up today, hmmm ... It seems that there is a daily excuse or reason for the prices to skyrocket. Our politicians do nothing about it, the car companies don't want to cooperate by building more hybrids or cars that operate on alternative fuel sources and we keep getting screwed. I often wonder what those craven idiots would do once there is no one left who could afford their shakedowns and they are left with no way to make a profit. We are awfully close to that point with all of the layoffs, unemployment, people scraping by and hardly able to afford to get to and from work or a meal, foreclosures, getting shaken down by the bank and insurance industries ... God, I just went and depressed myself all over again :cry:.

[GliderGuider]

16. A tight global supply makes prices very sensitive.

And what is making the global supply tight?

Well, it has a bit more to do with the oil itself than with the people selling it:





It rhymes with "Bleak Toil".
And Mother Nature doesn't particularly care if you believe this explanation or not. She bats last, and she never, ever negotiates.

[Name removed]

19. Deleted message

Message removed by moderator. Click here to review the message board rules.

[bronxiteforever]

23. President and Vice President Oil Company say "so". The American people aren't their base!

OPEC will increase oil supply out of respect for Bush
Bush said today that he would bring down gasoline prices by creating enough political good will with oil-producing nations that they would increase their supply of crude. “I would work with our friends in OPEC to convince them to open up the spigot, to increase the supply. Use the capital that my administration will earn, with the Kuwaitis or the Saudis, and convince them to open up the spigot.” Implicit in his comments was a criticism of the Clinton administration as failing to take advantage of the good will that the US built with Kuwait and Saudi Arabia during the Persian Gulf war in 1991. Also implicit was that as the son of the president who built the coalition that drove the Iraqis out of Kuwait, Mr. Bush would be able to establish ties on a personal level that would persuade oil-producing nations that they owed the US something in return.
Source: Katherine Q. Seelye, NY Times Jun 28, 2000

:mad:

[Canuckistanian]

25. Any excuse will do, I guess

Nigerian militant groups have been attacking Shell properties for DECADES.

What's different this time?

And why must the price rise at all? Nigeria IS a major oil exporter, but not necessarily the only game in town.

Or is oil getting so scarce that ANY supply line could be vital?

[Robbien]

27. The media uses the excuses because they can't say it is because of speculators

playing around with the oil stock market placing bets and making billions of dollars, which of course is paid for from pump prices.

The media doesn't want to spoil the game for the rich gamblers.

[Fovea]

39. At this point it is getting so tender

when a butterfly runs into a supertanker, the price at the pump goes up a dime.

[Zachstar]

28. Oil above 150 by 2009 at this rate.

This is not a game folks we have to get away from this resource at once!!

[Fovea]

40. Despite the chance

of irritating Nederlander, I think $150 by Aug 08.
That should gin up enough political will to invade Iran.
It should also bring back the Hooverville with a vengeance.

After all, kickin their ass and taking their gas is workin out so well.

It is not a game. YOu are absolutely right. But doing that means the absolute end of suburban America and all that suggests.

If you tried, you couldn't have designed a community worse adapted for mass transit than the exurbs. They aren't generally parts of mixed economies, instead they are economic black holes requiring long commutes that make no sense.

Heating the shoddy mini castles will also be undoable.

[ohio2007]

29. Isn't that a Chinese oil pipline ? they should look into why so much unrest

[legin]

31. A bit about Nigeria

(snip)

So in fifteen to twenty years time the world’s most powerful states will be almost completely reliant on Saudi Arabia, the Gulf States, and a few developing countries to supply them with their oil and gas (unless major new reserves are exploited elsewhere or viable energy alternatives are developed effectively).

Yet, despite this potentially critical overdependence, it is ever more apparent that many Western nations believe they can no longer fully rely on some of these hydrocarbon-rich countries to consistently supply them with the bulk of their energy in the future. In recent years, for example, historically precarious relations between some O.P.E.C. and G8 members have deteriorated even further (e.g. war with Iraq and political tension with Iran). In any case most O.P.EC. states are perceived to be volatile with hazardous political, military, economic, social, religious, and legal environments (i.e. Algeria, Indonesia, Nigeria, and Venezuela). President Bush recently admitted in his State of the Union address that ‘…we have a serious problem. America is addicted to oil, which is often imported from unstable parts of the world…’

There is also intense competition between Western nations and the emerging superpowers of China and India in the race to secure future oil and gas concessions and international supply chains in these so-called ‘unstable’ environments. China, for example, has been accused of indirectly financing war, conflict, and terrorism by investing in conflict prone and even failing states such as Sudan (where two million people have died in a twenty year civil war that has erupted in to the Darfur crisis and where elements in Khartoum support sub-Saharan insurgent groups).

Thus, pro-Western states such as Nigeria that have significant reserves and that maintain positive relations with the G8 and other powerful nations have become a strategic imperative for developed countries that believe they must be able to import oil and gas from cooperative rather than hostile markets. For example, Nigeria currently supplies approximately 20% of all the U.S.A.’s imported oil (more than the 15% Saudi Arabia provides) and the U.S.A. remains Nigeria’s largest customer (oil comprises 90% of Nigeria’s exports). Consequently the U.S. is increasing its military presence in Nigeria with advisory teams and a new command for Africa (A.F.C.O.M.) is proposed for 2008. In competition, China will also provide martial aid (among other resources) in exchange for oil and gas supplies to secure future energy trade.

(snip)

http://www.politicalriskanalysis.com/nigeria.html

[ohio2007]

34. China, for example, has been accused of indirectly financing war, conflict, and terrorism by

snip
China,
financing war, conflict, and terrorism by investing in conflict prone and even failing states such as Sudan (where two million people have died in a twenty year civil war that has erupted in to the Darfur crisis and where elements in Khartoum support sub-Saharan insurgent groups).
snip

http://www.politicalriskanalysis.com/nigeria.html
the 800 lb Gorilla gets a free pass since they are a developing nation and can only afford to trade guns for oil.
/sarc

[Zhade]

32. I WISH IT WERE 3.50! It's over 4 bucks for premium nearly everywhere in L.A.!

NT!

[Name removed]

33. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Javaman]

35. I'm a bit surprised at the missile attack but not at the Nigeria attacks.

read www.energybulletin.net great site for info.

[robertpaulsen]

37. 117.48 today.

Light Crude (NYM) price change
May 08 ($US per bbl.) 117.48 +0.79

http://money.cnn.com/data/commodities/index.html?

[PaulTee]

38. This Should Be No Surprise....

We were warned................

http://www.youtube.com/watch?v=-tPePpMxJaA&feature=related

But we did nothing.

The problems are deeper, deeper....

http://www.youtube.com/watch?v=-tPePpMxJaA&feature=related

We weren't listening, Mr President.

[GliderGuider]

41. Over $119/bbl right now

It has traded up to $119.74 today.

Remember back in early January, when oil first traded at $100? How stunned we all were? 4 months later it's up 20%. If this rise keeps on though the high-demand driving season, we'll see $140 to $150/bbl by Labour Day.

Welcome to Peak Oil, ladies and gentlemen.

On edit: I originally posted that it was over $118, and then it went up over a dollar while the editing period on the post was still open. Watch 'er go!

[robertpaulsen]

42. Wow! Closed at $119.50

Russia peaked last year. Saudi Arabia claims they will hit 12.5 mbd next year "and then we’ll see.” This should be the number one campaign issue, if they cared about reality.