Oil hits new high despite Saudi offer
The price of oil surged to a record new high yesterday of nearly US$140 ($185) a barrel. Traders shrugged off a pledge from King Abdullah of Saudi Arabia to increase production as the weak dollar spurred investors to make further moves into crude. United States crude set a record high of US$139.89 a barrel, before settling down 44c to $134.17. London Brent crude was up US$3.05 at US$138.16 at one point but fell 58 cents to US$134.13 a barrel.
As I was predicting a couple of days ago, the new Saudi oil output promise has done little to stop the rising price of oil. They promised to increase production by 200 000 barrels a day next month, but as I pointed out, they already increased it 300 000 barrels a day last month when we saw spectacular increases, all up production is the highest it has been for 27 years now and my suggestion is that demand is now out-stripping supply, one guy I was watching last night on CNN said that production would need to rise by a million barrels a day to keep up with demand, I just don’t think any country has that output potential especially when you see they low amount left in global reserves. The reality is the era of cheap oil is over!
Whats that sound?
ReplyDeleteWhy, its the worlds smallest violin playing for all the dickhead boy racers that can't afford petrol any more.
Lol i hear that violin as well, i put some 98 in my car last night and i swear the pump got to ten dollars in less then 6 secs!
ReplyDelete$2.27 per litre!
Im going to convert my lawn mower into a small car at this rate, how people with families are coping i'll never know!
My wee 1.3L car was last filled when petrol was 200.9 / litre....and I still have more than half a tank.
ReplyDeletePeople with big cars really need to stop whining and buy a car they can afford to run.....now....in the new world. Or maybe look at acquiring the skills to run their car on water. Looks like it might be do-able for any competent mechanic.
Why doesn't anybody think about listening to the Saudis and OPEC who said that it's the speculators who are driving prices up - this is the real reason increasing supply will not make any difference. If they were able to put a ban on these future traders/hedge bet people, then oil prices will fall.
ReplyDelete