Oil nears $105 for the first time

Discussion in 'General' started by Dan, Mar 5, 2008.

  1. Dan

    Dan KiloTanked in post 153451

    The US pleads OPEC to increase supply, while OPEC settles into a $100/bbl market for keeps …

    [xfloat=left]http://www.cleanmpg.com/photos/data/506/oil-on-water_310.jpg[/xfloat]David Goldman - CNN Money - March 5, 2008

    With talk of Peak Oil, there are always questions of "how much room for increase does OPEC have?"... - Ed

    Oil prices neared $105 a barrel Wednesday for the first time ever after a government report showed a surprise dip in crude supplies and OPEC announced its decision to not increase production.

    U.S. light crude for April delivery settled at a record $104.52, up $5, beating the previous settlement high of $102.59 set last week. After the settlement, crude prices rose as high as $104.95, topping the previous all-time intraday high of $103.95 set Monday.

    In its weekly report, the Energy Information Administration said crude stocks fell by 3.1 million barrels last week. Analysts were looking for a rise of 2.3 million barrels, according to a Dow Jones poll. Oil was up $2.05 to $101.57 a barrel just prior to the inventory report's release at 10:30 a.m. ET.

    The severe and unexpected decline was perhaps caused by last week's fog in the Gulf Coast region.

    "It looks like some oil was lost in the fog," said senior Alaron Trading analyst Phil Flynn. "Analysts didn't think it would affect supply ..." [rm]http://money.cnn.com/2008/03/05/markets/oil_eia/index.htm?postversion=2008030515[/rm]

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