Crude rises $1.93 to $34.98 a barrel

[UpInArms]

http://www.chron.com/cs/CDA/ssistory.mpl/business/energy/2383889


NEW YORK -- Oil prices charged higher today as the gasoline market took strength from fires at two U.S. refineries and as selling from speculative hedge funds ran out of steam ahead of an OPEC meeting.

Light crude futures traded in New York settled at $34.98 a barrel, up $1.93, or 5.8 percent. London Brent crude settled 3.6 percent higher, up $1.05 at $30.23 a barrel.

U.S. gasoline futures prices rose sharply following news that big refineries near Chicago and St. Louis had fires over the weekend.

<snip>

The average retail pump price for gasoline was $1.62 a gallon as today, according to the American Automobile Association, a price that had yet to incorporate the higher futures prices.

A year ago, U.S. gasoline futures were 96 cents a gallon and the average retail price for a gallon of gasoline was $1.49 a gallon, using AAA figures.

...more...

[kalian]

1. TWO US refinery fires...?

when, where? How long ago? :shrug:

[LifeDuringWartime]

2. my guess is iraq

but i'm probably wrong

[htuttle]

6. It says Chicago and St. Louis...

...last weekend.

?

I heard nothing about either fire.

[kalian]

10. That's my point....

[RobertSeattle]

3. Joe "Six Pack" expected under $1 Gas after Iraq

It subtle, but this could come back to haunt Bush if gas spikes during the summertime.

[fjc]

4. Spike? Geez, it's a buck 65 for unleaded in Atlanta already.

[RobertSeattle]

5. I heard if a "perfect storm" occurs could go way above $2 this summer

The downside is that everytime gas spikes the GOP uses it as an excuse to lower the Federal excise tax on gas.

[Zhade]

11. Rumors say $3.00/gallon by summer.

NT!

[Fovea]

18. The rumors are probably right

And pushing gas taxes down means the end of road repair as we know it.
In fact, I suspect an eventual backlash where even more subsidies for automotive transport get shoved onto the commuter.

Really, I believe that we will be at parity with European prices within the next year or two.

[Norbert]

15. I call this the price of a little house cleaning on Pennsylvania Ave.

[lastknowngood]

7. more profits for the shrub

and his gang

[Dogmudgeon]

8. This may be permanent

We've reached the end of the line of cheaply-extracted oil. A lot of DUers call it "Peak Oil" after a book on the subject. From here on in, we have to struggle against gravity and petrochemical viscosity -- almost all the pressurized, low-viscosity stuff has been used up.

Gasoline has been kept artificially cheap in the USA anyway. One figure that is commonly cited is that, without the price supports, a gallon of gas would cost over $7 per gallon. We may be at that point sooner than later.

Bikes are going to be coming back in style very soon.

--bkl

[Chrysophylax]

9. People will use their cars anyway

Gas prices are relative low now in europe despite the cold winter.

1.05€/liter unleaded in italy.

That's around $5.00/gallon (80% taxes).

[NickB79]

14. But how many trucks and SUV's are there in Europe?

Do you have a growing "big-rig" mentality over there like we have seen here in the US for the last decade? You would not believe how many massive, gas-guzzling SUV's and 4-wheel drive trucks you see in the middle of congested cities here. From what I've read, Europe has embraced small, fuel-efficient compact cars? $5/gallon might be bearable if you drive a 35-40 mpg compact car, but if you're one of the millions of Americans driving 15 mpg SUV's and trucks? A $50-$80 tank of gas might be a little too much for most US drivers to bear.

[aneerkoinos]

16. strong euro n/t

[htuttle]

19. Europe has been benefiting from the falling dollar

Since oil is priced in dollars, and the dollar has lost a good chunk of value over the last 2 years, a barrel of oil is now cheaper in euros than it was 2 years ago.

All other things being equal, it's likely that cheaper energy costs will offset any decline in exports to the US. Especially since most imports from Europe to the US tend to be luxury type goods anyway. The really price sensitive imports in the US tend to come from China and the other Pacific Rim nations.

[mrdmk]

12. Refineries catch on fire all the time

It is part of the business. This is why refineries have a haz mat crew on site 24/7. I lived next to a ARCO plant and leave my white truck parked outside once in a while. Come out the next morning and find black oil misted on the paint job. I lived about five miles away upwind from the plant.

edit: spelling

[benburch]

13. Good thing I own a Hybrid Car!

You should, too!

[MisterC2003]

17. I own an SUV

... but I don't commute. I work at home and my wife's office is less than a mile from home. We have put up with a lot to get this situation, but lemme tell ya, it's sweet. No commute and we only tank up every week or so.

[gulfcoastliberal]

20. Buy Tanker Stocks

Read an article in Investors Biz Daily yesterday, capacity is strained to the limit and spot charters are shooting through the roof with no relief in sight. Boatyards are backlogged for months so this will continue through the year. IMHO, check out OMM, NAT, FRO, TK.