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Thread: Oil hits above $100 per barrel

  1. #1
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    Default Oil hits above $100 per barrel

    How do you have growth with such energy prices?

    NEW YORK (AP) -- Oil futures shot higher Tuesday, closing above $100 for the first time as investors bet that crude prices will keep climbing despite evidence of plentiful supplies and falling demand. At the pump, gas prices rose further above $3 a gallon.

    http://www.nytimes.com/aponline/busi...hp&oref=slogin

  2. #2

    Default Re: Oil hits above $100 per barrel

    That article sounds like a lot of sensational writing. The "plentiful supplies" part is the first clue -- there was just a big refinery fire that took 67,000 barrels/day offline. That is a big decrease in supply.

    But, check out this part:

    "There was no single driver behind oil's sharp price jump; investors seized on an explosion at a 67,000 barrel per day refinery in Texas, the falling dollar, the possibility that OPEC may cut production next month, the threat of new violence in Nigeria and continuing tensions between the U.S. and Venezuela."

    This makes it sound like the price may have gone up for little or no reason: "there was no single driver behind oil's sharp price jump." To say that investors "seized" on the refinery explosion makes it sound like thay are happy about the fire. The truth is that the decision is made without emotion -- if supply goes down, price goes up. There is no "seizing" here.

    Then, the author says there is no overriding reason for the price jump, right after listing off 5 reasons that supply might be affected. Did this guy forget what he was writing while he hit the return key?

    I wonder why this guy can't write and objective piece and why he seems to enjoy it when our fuel prices increase?

  3. #3

    Default Re: Oil hits above $100 per barrel

    Nice! They are drilling wells about 5-6 miles from my folkes land. Could be sweet! Some wells around there are making up to 2,000 bls a day and some even more. But I still hate $3 gas.

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