Attacks In Oil Fields Drive Crude Oil Toward US$70 Per Barrel
by John Laumer, Philadelphia on 05.22.07
"Brent North Sea crude for July delivery rose 42 cents to 69.84 dollars in electronic trading...On Monday, New York's main oil futures contract, light sweet crude for delivery in June, gained 21 cents to 65.15 dollars a barrel in electronic deals before the official open of the US market...Crude futures were a little firmer today, supported by further attacks and kidnappings in Nigeria," Sucden analyst Michael Davies said in London...[And,] US government data showed gasoline inventories are more than 7.0 percent below their five-year average for mid-May." We hear the Nigerian rebels have gotten hand-helds so they can download Brent North Sea crude oil futures in real-time, allowing for strategy re-adjustments in the field (joke). The $70 ceiling bump should nicely help demand soak up Toyota's recent Prius production capacity expansion. The payback period for the incremental investment will shrink shrink shrink as the gasoline price expands expands expands...'just so we can get to the shore and back on a tankful'. AFP Via::Yahoo News. Image credit: Car Buyers Notebook
Conservation is the best way to insure price stability. The less we use, the less comes out of the ground, and the longer it lasts. The longer it lasts, the more stable the prices. (And the more slowly the greenhouse gases build up, limiting damage to our economy from global warming.)