Oil above $96 on drop in US supplies

[Ouchyfish]

Oil above $96 on drop in US supplies By GILLIAN WONG, Associated Press Writer
1 hour, 21 minutes ago

SINGAPORE - The price of oil rose to a new record above $96 a barrel Thursday after a surprise drop in U.S. crude stockpiles raised concerns about supplies for coming winter demand. Other energy futures also gained.

It was the second week in a row the U.S. Energy Information Administration reported a sharp and unexpected drop in oil inventories.

"The decline in U.S. crude oil inventories has been a key driver of oil prices," said David Moore, commodity strategist at the Commonwealth Bank of Australia in Sydney.

Light, sweet crude for December delivery rose as high as $96.24 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore before dropping back to $95.59 a barrel.

Crude prices have reached inflation-adjusted highs set in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $101 or more today.

"We are stepping into an unknown area. Nobody wants to sell (given the fear of a) further rise," broker Ken Hasegawa of Fimat Japan told Dow Jones Newswires.

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Is this shit ever going back to a dollar a gallon? =(

[Kramer]

nope. not unless there is an alternative fuel that can run the world and is introduced today. until then, people are going to keep hording the most precious commodity on the planet.

oil has been undervalued for the past 20 years or so and is not even close to it's true price/worth yet even, imo.

[Ouchyfish]

Well, if the government cannot "fix" this problem, they need to throw money at it. Take the billions going to this war and give it to American workers to pay for their fucking gas.

[Lyion]

nope. not unless there is an alternative fuel that can run the world and is introduced today. until then, people are going to keep hording the most precious commodity on the planet.

oil has been undervalued for the past 20 years or so and is not even close to it's true price/worth yet even, imo.

I'd love to know how you figure that. It costs 13 dollars or so to extract and sell a barrel of oil. There are tons of supplies and demand is consistent.

Lithium Batteries and Nuclear Power is the answer to our energy issues. We need to stop wasting cash on bio fuels and invest it all in how to deal with nuclear waste.

[Tikker]

i think more efficient solar power is the way to go. that and geo-thermal

huge incentives here to convert all the AC and furnaces to geo-thermal

[Kramer]

i am referring to indirect costs that are tied to oil, the amount we are and have been spending to procure and stabilize a supply in the middle east, the destruction to the ecosystem, the destruction to the environment, these are all very costly and are not typically added into the true cost of obtaining and producing oil derivatives.

in the same way the environmental cost of logging the amazon is not factored into its price, people are only paying for procurement and delivery, etc. rather than the mess that will be left behind afterwards.

the idea that maintaining our oil supply is remarkably expensive when one considers the option of developing alternative forms of energy, such as wind and nuclear, that would allow us to foster a supply on our own soil.