The purpose of this section is to show the causes and effects of long-term price
changes; however, it is somewhat interesting to follow the recent series of steady price increases to see
how quickly the price went up, and how alarmed the news media was when it did.
The newest items are at the bottom, so there may be some broken links near the top.
Decline on Report of U.S. Fuel Supply Increase. Crude oil fell more than $1 a barrel and
gasoline plunged after an Energy Department report showed an unexpected increase in U.S. inventories of
the motor fuel. Stockpiles rose 402,000 barrels to 205.8 million last week, the report showed.
Oil price may hit $100 in
days. Oil rose above $96 overnight [11/9/2007] on winter fuel supply concerns, a tumbling US
dollar and big options positions betting oil could strike $100 next week. US crude rose 70 cents to
$96.16 a barrel by 1906 GMT, off earlier highs of $96.68 a barrel.
crosses 96 dollar a barrel. New York's main futures contract, light sweet crude for delivery in
December, was trading at 95.64 dollars a barrel, up 1.11 dollars, or 1.2 percent, from its close of
94.53 dollars a barrel in US trades. It also smashed Wednesday's record of 94.74 dollars.
Oil prices ease as OPEC lowers
demand forecast. World oil prices fell slightly Thursday [11/15/2007] as OPEC lowered its
estimate for demand growth and ruled out a hike to crude output. The market was meanwhile preparing for
weekly government data on the state of US energy stockpiles. New York's main contract, light sweet crude
for December delivery, dropped 26 cents to 94.64 dollars per barrel. In London, Brent North Sea
crude for December delivery lost 48 cents to 90.88 dollars per barrel.
Oil prices slide.
World oil prices fell sharply overnight [11/16/2007] on easing supply concerns as OPEC lowered its estimate for
demand growth and the US government revealed a surprise increase to crude stockpiles, traders said.
Oil reaches new record above $99.
Oil prices came close to breaching the $100 a barrel mark on Wednesday [11/21/2007] as the dollar remained
weak, tempting traders towards commodities.
prices hit closing record: $98.18. Oil futures resumed their march
toward $100 a barrel Friday [11/23/2007], rising to a record close in light holiday trading
on concerns about tight heating oil supplies while also drawing support from a buoyant stock
slump under $88. Oil prices tumbled under $88 overnight, with all eyes on the
forthcoming OPEC output meeting in Abu Dhabi as sentiment turned on whether there will be a
production hike or not. OPEC, which pumps about 40 percent of the world's oil, was
due to meet in the United Arab Emirates capital tomorrow [12/6/2007].
Oil hits $100 a barrel for the
first time. Oil prices rose above the symbolic level of $100 a barrel for the first time on
Wednesday [1/2/2008], a long-awaited milestone in an era of rapidly escalating energy demand. Crude oil
futures for February delivery crossed the $100 threshold on the New York Mercantile Exchange shortly after
noon New York time, before falling back slightly. Oil prices, which had fallen to a low of $50 a barrel
at the beginning of last year, have quadrupled since 2003.
Oil falls near $90 on
recession fears. Oil slipped toward $90 a barrel on Thursday [1/17/2008] amid growing fears the
U.S. economy will slip into a recession and hurt demand from the world's top energy consumer. The loss
stretches oil's slide to about 10 percent since the record over $100 a barrel hit January 3, taking
pressure off of producer-group OPEC to boost output at its next meeting in February.
Oil soars to record above
$US100. Oil prices settled over $US100 for the first time, as a potent combination of supply
concerns pushed crude into record territory. Futures surged early in the session on an explosion at
Alon USA's Big Spring, Texas refinery that occurred on Monday [2/18/2008]. Damage assessments indicated
that the refinery would be out of commission for weeks or months.
North Slope crude market cracks $100-barrel barrier.
The price of Alaska oil blew past the $100 mark Tuesday [2/26/2008], extending an incredible run that's enriching
not only oil companies but the state. "I'm not astonished anymore," said Michael Williams, the state's
chief economist and a longtime observer of oil markets.
Oil price hits new record.
World oil prices hit a new record of $101.32 a barrel in Asian trading today [2/21/2008] on renewed concerns
over global crude supplies, dealers said. New York's main oil futures contract, light sweet crude for
delivery in March, closed overnight up 73 cents at an all-time high of $100.74.
Oil Shoots Up to $102 Per
Barrel. Crude prices rebounded Thursday [2/28/2008], shooting up more than $2 a barrel
to a new record as a falling dollar and the prospect of lower interest rates attracted fresh money to the
oil market. Retail gas prices, meanwhile, rose closer to records above $3 a gallon.
Oil Is Little
Changed After Rising Above $102 on Weak Dollar. Crude oil traded little changed after earlier
rising above $102 a barrel, the highest ever. Gold advanced to a record as a weakening dollar spurred
investors to buy commodities as a hedge against inflation. Futures jumped in New York and London as
the dollar fell to $1.50 per euro for the first time.
Oil Advances to Record $105.97 as
Dollar Drops to All-Time Low. Crude oil rose to $105.97 a barrel, the third day this week New
York prices have reached a record, as the U.S. dollar fell to its lowest ever against the euro. Gold and
copper also advanced to all-time highs as the sinking dollar made commodities priced in the U.S. currency
cheaper. Oil closed at a record yesterday [3/5/2008] after U.S. crude inventories fell for the first time in
eight weeks and OPEC refrained from raising production.
Crude Oil Rises Above $108 to
Record as Returns Outpace Stocks. Crude oil rose above $108 a barrel in New York to a record as investors
purchased futures because the returns have outpaced those of financial markets. Crude oil for April delivery rose
$2.75, or 2.6 percent, to close at a record $107.90 a barrel at 2:47 p.m. [3/10/2008] on the New York Mercantile
Exchange. Futures surged to $108.21 a barrel today, the highest since trading began in 1983.
Oil crosses record $110, despite
supply rise. Oil prices rebounded to another record high Wednesday afternoon [3/12/2008] after
initially plummeting when a government report said supplies of crude and gasoline had risen much more than
expected. In afternoon trading, U.S. light crude for April delivery surged to a high of $110.20 before
closing at $109.92. Oil had traded as low as at $107.09 following the report's release on Wednesday
Oil prices plunge after hitting new record high. Oil
prices plunged Monday [3/17/2008], pulling back at least temporarily from record levels as investors feared that the
financial crisis that forced the sale of Bear Stearns Cos. is a sign of deep economic trouble.
extends slide on economic worries. Oil prices extended a week-long slide on Thursday [3/20/2008],
briefly tumbling below $100 a barrel for the first time in two weeks amid growing concerns an economic slowdown
in top consumer the United States would cut global energy demand.
Oil to stay within $US110, says
OPEC. Oil prices will range between $80 and $110 per barrel for the rest of 2008, OPEC President Chakib
Khelil says. Mr Khelil, who is also Algerian energy and mines minister, said on Algerian television that OPEC was
under "big pressures" from consuming nations who liked to portray the group as responsible for high oil prices, when in
fact the market was responding to US economic problems and the falling dollar.
Oil tops $107 after Iraqi pipeline bombed. Oil
prices rose by more than a dollar Thursday [2/27/2008], as the bombing of a key Iraqi pipeline extended a
buying spree spurred by an anemic dollar and lower U.S. fuel inventories.
Oil Rises Above
$107 After Iraqi Pipeline Blast Curbs Supply. Crude oil rose above $107 a barrel in New York
after a pipeline explosion in southern Iraq cut supplies to the country's main export terminal. The
Iraqi oil ministry didn't yet know the cause of the blast on the Zubair-1 pipeline, one of two that transport
oil to the Basra terminal, an oil ministry official said.
Oil prices head towards
$US110 a barrel. Oil prices rose more than 2 percent overnight as weakness in the US dollar
following a batch of soft jobs data outweighed fears of a demand slowdown in the world's biggest energy
consumer. News of a fire at an Exxon Mobil refinery in Los Angeles supported the gains, sparking fears
over gasoline supply heading into the summer driving season.
Gasoline Surges to Record on U.S. Fuel-Supply Drop. Crude oil rose more than $3 a barrel and
gasoline surged to a record after an Energy Department report showed that U.S. supplies of the motor fuel fell
a third week. Gasoline stockpiles declined 4.53 million barrels to 224.7 million barrels last
week, the biggest drop since August, the report showed.
Oil prices rise to new high above $112. Oil
prices rose to an intraday trading record above $112 a barrel Tuesday [4/15/2008] as the U.S. dollar fell
against the euro and crude oil shipments along one U.S. pipeline were said to be operating below capacity.
Light, sweet crude for May delivery on the New York Mercantile Exchange rose to an intraday record of
$112.80 a barrel in electronic trading by early afternoon in Europe, well above the previous trading
high of $112.21 set last week.
Crude Oil Rises Above $117 as
Attackers Cut Nigerian Supply. Crude oil in New York rose to a record above $117 a barrel after attacks cut
Nigerian output and the dollar dropped against the euro. "We are clearly headed over $120 a barrel and we are targeting
$125," said John Kilduff, vice president of risk management at MF Global Ltd. in New York. "The last thing we need
is another supply disruption. The outage certainly adds to the bullish sentiment."
Crude Oil Rises
to All-Time High Above $119 on Record Euro. Crude oil rose to a record $119.90 a barrel in New
York as the dollar dropped to an all-time low against the euro, prompting investors to purchase commodities
as an inflation hedge. Oil gained as the dollar touched $1.60 per euro for the first time after European
Central Bank policy makers signaled they may raise interest rates because of inflation. Crude's
24 percent surge this year pulled gasoline and diesel to records, weighing on an economy already
reeling from a credit crisis.
Oil hits fresh high as biofuels rethink looms.
Expectations rose on Tuesday that soaring food prices will provoke a rethink of support for biofuels in Europe
and the US, as the price of oil hit a new high of almost $120 a barrel.
Oil prices recede after setting record above $117.
Retail gasoline prices hit another new milestone today, jumping to an average $3.50 a gallon at filling stations across the
country. Crude oil prices, meanwhile, set new records of their own, spiking above $117 a barrel after an attack on a
Japanese oil tanker in the Middle East.
Oil falls more than $3 on weaker
demand. Oil prices fell more than $3 a barrel today [4/29/2008] as the market absorbed data
showing demand is falling even as supplies are rising. Meanwhile, gas prices inched higher at the pump,
continuing their record-breaking press toward $4 a gallon.
stocks fall; Oil surges past $120. U.S. stocks fell on Monday [5/5/2008] as resurgent oil prices set a record
over $120 a barrel and doubts about Bank of America's plan to buy the largest U.S. mortgage lender renewed concerns about
the nation's economic health.
Oil nears $123 on $200 oil prediction, supply concerns.
Oil futures blasted to a new record near $123 a barrel Tuesday [5/6/2008], gaining momentum as investors bought on a forecast
of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to
rise to new records of their own in coming weeks.
Gas and oil prices continue to set records. Oil
prices shot to a new record near $127 a barrel Tuesday [5/13/2008] on concerns that Iran may consider cutting
crude oil production. Gas prices, meanwhile, rose to a new record over $3.73 a gallon Tuesday, and their
advance shows little sign of slowing with Memorial Day weekend, the traditional start of the summer driving
season, just 10 days away.
Oil settles above $129 for first time.
Just in time for the start of the summer driving season: Oil near $130 a barrel and gas getting closer to an
average of $4 a gallon. Crude prices spiked to yet another trading high Tuesday [5/20/2008] as supply
concerns mounted. At filling stations across the country, the national average price for a gallon of
regular gasoline touched $3.80 for the first time, having followed oil's spectacular rise.
Oil prices pass $132 after
government reports supply drop. Oil prices bolted to a new record above $132 a barrel Wednesday
[5/21/2008] after the government reported that supplies of crude oil and gasoline fell unexpectedly last week.
And crude's rise in the futures market again pressured consumers by pulling prices at the pump higher — a
gallon of regular gas rose overnight to a new record above $3.80 a gallon.
Oil above $133 on Nigeria,
North Sea. Oil rose above $133 on Monday as long-term supply concerns lingered and fresh production problems
appeared in Nigeria and Norway. U.S. crude rose 95 cents to $133.14 a barrel by 11:28 a.m. EDT. London Brent
crude rose $1.47 to $133.04. Oil prices have risen nearly 40 percent this year, topping $135 for the first time
biggest day yet drags down stocks. Oil prices made their biggest single-day leap ever Friday, dragging the
Dow Jones industrials down nearly 400 points and raising the once-unthinkable prospect of $150 oil and more record gas
prices by the Fourth of July.
Energy chief: Flat production
behind oil prices. Oil prices made their biggest single-day surge on Friday [6/6/2008], soaring $11
to $138.54 on the New York Mercantile Exchange, an 8 percent increase. That followed a $5.50 increase the day
before, taking oil futures more than 13 percent higher in just two days. While demand has increased as supply
has stalled, analysts have also cited the decline of the U.S. dollar, fears about the long-term supply of oil, and
aggressive speculation as factors in rising prices.
Oil climbs to new record above $142 a barrel.
Oil prices climbed to a record above $142 a barrel Friday [6/27/2008] as the U.S. dollar's protracted slump
and falling stock markets prompted investors to take refuge in oil. Prices were also lifted Thursday
after OPEC's president said crude prices could rise well above $150 a barrel this year and Libya
said it may cut oil production.
Oil near $143 on view dollar will keep
falling. Oil futures climbed to a new record near $143 a barrel Friday as the dollar weakened
against the euro, confirming expectations that the falling greenback, a major factor in crude's stratospheric
rise, will extend its decline and add to oil's appeal.
Iran talks, stronger dollar cause oil to
drop. Oil prices tumbled nearly $4 a barrel today, erasing many of last week's record gains in
a single session as concerns about potential supply disruptions eased. Light, sweet crude for August
delivery fell $3.92, or about 2.7 percent, to settle at $141.37 on the New York Mercantile Exchange.
Oil extends slide into 2nd day, losing over
$5. Oil tumbled more than $5 a barrel Tuesday [7/8/2008] in its second big drop this week,
hurling crude back to levels not seen since June 26 as traders wary about the health of the global economy
cashed in gains from oil's recent rally.
Oil sets new
trading record above $147 a barrel. It's only July, but it might be time to start loading up on blankets and
sweaters. Oil spiked to a new trading record as hostilities rise between the West and Iran — raising the
likelihood that this winter's heating bills will be the priciest yet.
Oil Prices Plummet Over $6 Amid Economic Fears. Oil
prices fell harder than they have in 17 years on a dollar basis Tuesday, as fears that record fuel prices
are spreading broad economic pain led to the third big sell-off in just over a week. US light, sweet
crude plunged $6.44, or 4.4 percent, to settle at $138.74 in an extremely volatile session.
Oil Falls More Than $5 as
Natural Gas Tumbles, Economy Slows. Crude oil fell more than $5 a barrel, dropping below $130 for the first
time in six weeks, as natural gas futures tumbled and global economic growth slows. Natural gas dropped more than
7 percent after a government report showed that U.S. supplies rose a greater-than-forecast 104 billion cubic
feet last week.
The great oil
bubble has burst. The price of a barrel of crude has been falling: from a peak of $145 in
early July, it came down to $117 and was trading yesterday [8/7/2008] at $120. That's almost a
20 percent drop in little more than three weeks.
Oil ends U.S. trading at a three-month low. Oil
prices finished at a new three-month low Monday [8/11/2008] after briefly dropping below $113 a barrel mark, as
the dollar extended its rebound and more signs emerged that China's energy demand could be leveling off.
Shock waves spread
as oil bubble bursts. The exposure of the oil price boom as a speculative bubble has been
the catalyst for a change in world financial flows, and the ripples are now spreading through currency,
commodity and financial markets. Oil hit its peak of $147 a barrel on July 11, paused and then
started to tumble on July 15, and there has been no sign yet that its fall has been arrested.
Oil drops below $110 as Gustav
fades. Oil fell below $110 a barrel on Tuesday [9/2/2008] for the first time since April as
traders bet the U.S. oil industry would recover quickly from Hurricane Gustav. Early indications that
oil installations suffered only minor damage from the storm returned the market's focus to bearish factors
including slowing global energy demand growth, rising inventories and a stronger U.S. dollar.
Oil hits 5-month low as
demand shrinks. Oil prices fell to their lowest level in five months on Friday [9/5/2008] as
investors worried that an economic slowdown could chip away at demand for energy.
Oil rises as Ike bears down on Texas coast.
Oil prices rose over $102 a barrel Friday [9/12/2008] as Hurricane Ike swept up from the Gulf of Mexico,
prompting companies along the Texas coast to shut down refining and drilling operations.
Oil Falls Below $97 on Little
Damage From Ike. Oil prices fell below $97 a barrel on Monday [9/15/2008] after Hurricane Ike
inflicted minimal damage to oil installations on the Texas coast. Light, sweet crude for October
delivery declined $4.39 to $96.79 a barrel in electronic trading on the New York Mercantile Exchange by
noon in Europe.
Oil sinks more than $10. Oil prices tumbled
more than $10 a barrel Monday [9/29/2008] — the second biggest drop in dollar terms ever on an active
contract — as the government's proposed $700 billion bailout was defeated by the House, adding to
concerns about the spread of economic weakness worldwide.
drops 6 percent to below $88 on demand concerns. Oil dropped more than 6 percent to below $88
a barrel on Monday [10/6/2008] as a global market rout churned concerns that faltering fuel demand could slow
further. U.S. stocks tumbled 6 percent to the lowest level in nearly five years as part of an
international sell-off on fears the global economy was heading into recession.
Oil falls below $79 on
profit-taking, demand drop. Oil prices fell below $79 a barrel in choppy trading Tuesday [10/14/2008]
as investors took profits from the previous day's rally and shifted their focus back to signs of dwindling
world energy demand. A falling U.S. stock market, a day after a record-breaking advance, also weighed
on crude prices as oil market traders continued to fixate on equities as a barometer for the overall
confidence in the shaky world economy.
Crude Oil Drops
Below $70 After U.S. Reports Inventory Gain. Crude oil fell below $70 a barrel to the lowest
since June 2007 and gasoline tumbled after a U.S. government report showed stockpiles increased more than
twice as much as forecast. Supplies rose 5.6 million barrels to 308.2 million barrels last
week, the Department of Energy said in a weekly report.
OPEC calls emergency meeting as oil
prices plummet. Oil prices plummeted Thursday [10/16/2008], falling below $70 a barrel for the
first time in 16 months, prompting the OPEC oil cartel to call for an emergency meeting next week.
The rapid decline in prices had alarmed both petroleum company executives and oil producers, who are becoming
increasingly nervous that oil's roller-coaster ride undermines the stability of energy markets.
Oil falls below $67 on
US recession fears. Oil prices tumbled below $67 a barrel to 16-month lows Wednesday [10/22/2008]
after the government reported big increases in U.S. fuel supplies — more evidence that the economic downturn
is drying up energy demand.
Oil below $64 as investors eye weak demand. Oil
prices fell to their lowest level in more than a year Monday [10/27/2008] before rebounding to just above $63 a
barrel as growing evidence of a global economic slowdown had investors betting on a further drop in energy demand.
Gas continues to fall as oil slips below $65. Oil
prices ended the week with a modest rally Friday but couldn't erase one ugly October: Crude capped its biggest
monthly drop since futures trading began 25 years ago, weighed down as a deflated U.S. economy crushes demand
for fuel. Oil's huge collapse — prices fell 32 percent for the month — has stunned
oil-producing countries while giving cash-strapped U.S. consumers a rare dose of relief.
prices swing wildly as Dow rally fails. Oil prices fluctuated throughout the day Monday
[11/10/2008], tracking closely with the path on Wall Street where an early rally failed to hold. Light,
sweet crude for December delivery rose $1.37 to settle at $62.41 a barrel on the New York Mercantile Exchange
Monday, but swung as low as $59.10 at one point.
Oil rises from 3-year low as stocks rebound.
A rebound in world stock markets supported oil prices Friday [11/21/2008], with crude creeping off a 3-year
low to trade above $50 a barrel. The bounce reflected how tightly oil prices are tied to trading in
equities and left open the likelihood of further volatility in the crude sector.
Oil plunges below $50 — What's ahead for
Texas? After six years of growth, Texas' mighty oil and gas industry is bracing for what could
be a sharp downturn in activity as falling commodity prices and the broader economic meltdown prod energy
companies to cut back. A stark reminder came Thursday, when crude fell below $50 a barrel for the first
time since May 2005. Its closing price of $49.62 was down almost $100 from the record close of $145.29 on
July 3. And weak global energy demands threaten to keep prices low.
Oil prices near $35 on more dour
economic news. Crude prices tumbled Wednesday following a raft of bad economic news and growing
stockpiles of unused gasoline that suggested demand for energy has continued to erode. Light, sweet
crude for February delivery fell $3.63 to settle at $35.35 in a shortened day of trading. Prices fell as
low as $35.13 just before the market closed for the holiday. It was the ninth straight day that crude
Crude Oil Rises More Than
6 Percent as U.A.E. Reduces Output. Crude oil rose more than 6 percent in New York, the biggest
increase in two weeks, after the United Arab Emirates said it would reduce output to comply with OPEC's supply curbs.
Abu Dhabi National Oil Co., the biggest producer in the U.A.E., will reduce oil supply to Asia in January and February,
according to a statement sent to buyers.
Oil drops below $US40 on
weak energy demand. Oil futures slipped below $US40 a barrel as the market focused on weak
energy demand after hefty price gains a day earlier amid the Israel-Hamas conflict. New York's main
contract, light sweet crude for February, closed 99 cents lower at $39.03 a barrel.
Oil falls below
$34 amid excess supply. Crude futures for March and beyond sank Tuesday revealing broad pessimism in the
markets over energy demand for the foreseeable future. ... Light, sweet crude for February delivery rose $2.23 to settle
at $38.74 per barrel on the New York Mercantile Exchange. Trading in the final day of the contract was very light,
leading to price swings close to $7.
Oil below $41
as U.S. crude workers may strike. Traders on Monday [2/2/2009] ignored the bullish effect of
strike threats from U.S. oil workers, sending benchmark crude prices below $41 over continued concerns about
the world's economy. Even new indications that OPEC members were generally complying with significant
output reductions failed to buoy markets.
Oil price slumps to $US35.
Oil prices fell for the second day running overnight after government data showed surging crude stockpiles amid sagging
demand in the US, the biggest energy-consuming nation. New York's main oil futures contract, light sweet crude for
March, shed $US1.61 from its closing price on Tuesday [2/10/2009] to $US35.94 per barrel.
New York crude oil price falls below
$US34. NEW York crude oil prices fell below $US34 a barrel overnight in a market plagued by weak energy
demand reflected in new US data that showed surging crude stockpiles.
Crude oil is getting cheaper —
so why isn't gas? Crude oil prices have fallen to new lows for this year. So you'd think gas prices
would sink right along with them. Not so. On Thursday [2/12/2009], for example, crude oil closed just under $34 a barrel,
its lowest point for 2009. But the national average price of a gallon of gas rose to $1.95 on the same day, its peak
for the year. On Friday gas went a penny higher.
Crude oil slides below key
threshold of $35 a barrel. Crude oil was again trading below a key threshold of $35 a barrel
Tuesday [2/17/2009] as an avalanche of bad economic news and scant faith in a quick recovery continued to
batter the commodity's value. Light, sweet crude for March delivery ended the day down $2.58
to $34.93 a barrel on the New York Mercantile Exchange.
Oil jumps more than $2.
Oil gained more than $2 a barrel Wednesday, after a government report showed that while supplies of gasoline fell much more
than expected, crude stockpiles continue to grow amid sluggish demand.
10%: Economy trumps cuts. Oil prices dropped 10% Monday as concerns over a weakening
economy overshadowed signs of supply reductions from OPEC. U.S. crude for April delivery settled
down $4.61 to $40.15 a barrel in New York. Prices fell as low as $39.84 a barrel during the session.
Crude oil prices tumble to end volatile week.
Crude prices fell sharply to end the week and natural gas tumbled to seven-year lows as a worsening economy led
to more painful cuts in the industrial sector. Benchmark crude for May delivery dropped $1.96 to settle
at $52.38 a barrel on the New York Mercantile Exchange.
The Editor says...
The link to the article immediately above is now gone, and the MSNBC site redirects visitors to a more current
story on the same subject. But if you're making your own chart of the history of oil prices, the older article
appeared on or about March 28, 2009.
Oil ends above
$60 — 1st time since November. Oil's most active contract settled above $60 a barrel
for the first time in more than 6 months after a government supply report showed stockpiles shrinking
and U.S. stocks rallied. U.S. light crude for July delivery — which became the active
contract Wednesday — settled at $62.04 a barrel, up $1.94 The settlement price was the highest
since Nov. 10.
Oil hits new 6-month high above $66. Oil
prices extended a rally to above $66 a barrel Friday [5/26/2009] to hit a fresh six-month high, after the U.S. reported a
fall in oil inventories and further signs of an improving economy.
Oil rises to new high for 2009, near $70 barrel.
Oil prices on Thursday [6/4/2009] set a new high for the year, buoyed by a weaker dollar and the first drop in unemployment since
January. Benchmark crude for July delivery was up $2.69 to settle at $68.81 a barrel on the New York Mercantile
Exchange. Oil climbed as high as $69.60 earlier in the day.
Washington Sleeps As Oil Prices Stir.
The cost of July deliveries of crude bounced over $73 Thursday [6/11/2009] as the American Petroleum Institute reported
shrinking U.S. inventories as the dollar weakens against the euro. Alexei Miller, chairman of the Russian energy
giant Gazprom, is repeating his prediction of a year ago that oil may eventually reach the $250 mark.
Oil rises nears $72 with supplies falling.
Oil prices climbed nearer to $72 a barrel Wednesday [7/1/2009] with early indications that the government could
report crude supplies have dropped for the seven out of the past eight weeks.
Oil below $66.
Oil dropped a dollar to below $66 a barrel on Friday [7/3/2009] after unemployment data hardened views economic weakness would sap
energy demand and that last month's rally was overdone.
Oil hovers near $79 amid rising US oil
supplies. Oil prices fell below $79 a barrel Wednesday [11/11/2009] in Asia as investors
mulled rising U.S. oil inventories and a weaker dollar. Benchmark crude for December delivery down
14 cents to $78.91 a barrel at midday Singapore time in electronic trading on the New York Mercantile
Exchange. The contract fell 38 cents to settle at $79.05 on Tuesday.
Crude Oil Falls to Two-Month
Low After U.S. Fuel Supplies Gain. Crude oil fell to a two-month low after a government report
showed that U.S. fuel inventories climbed as refineries bolstered operating rates. Gasoline stockpiles
rose 2.25 million barrels to 216.3 million, the report showed. Supplies of distillate fuel, a
category that includes heating oil and diesel, increased 1.62 million barrels to 167.3 million.
Crude Skids to Two Month Low.
Oil prices hit two-month lows Wednesday as U.S. government data showed that energy demand continues to
slump. Benchmark crude for January delivery gave up $1.95 (U.S.) to settle at $70.67 a barrel on
the New York Mercantile Exchange. Prices dropped as low as $70.13 a barrel earlier in the day.
Oil hits 5-week high,
nears $80. Oil prices gained for a fourth straight session, climbing to their highest level in more
than five weeks as cold weather swept across the country and the dollar weakened. Crude oil for February
delivery rose 72 cents, or nearly 1%, to settle at $78.77 a barrel — the highest since
Nov. 18, when prices settled at $79.58 a barrel.
'Historically bad week' for oil.
It's been a dismal week for the economy all around, with an abundance of gloomy data pummeling recovery hopes.
The oil market felt the brunt of the blows. Crude prices struggled to hold above $75 a barrel this week,
after reports showed jobless claims shot up to 500,000 last week. Additionally, a glut of oil supplies
topped the highest figures on record.
largest jump since 2009. Oil rose back above US$80 on Friday to a seven-week high, boosted by
stronger-than-expected U.S. and Chinese economic data which raised hopes of demand recovery in the world's
Oil prices hit
$90 milestone. Oil prices on Tuesday [12/7/2010] jumped above $90 a barrel for the first time
in more than two years, a key milestone for Wall Street analysts who say tightening supplies will eventually
drive prices above the $100 mark next year.
Oil falls to near $91 on weak US jobs
market. Oil prices fell to near $91 a barrel Friday [1/14/2011] in Asia as traders mulled
whether demand in a slowly recovering U.S. economy will be enough to push crude above $100 soon.
Oil prices soared to more than
$114 highest for two-and-half-years. The oil price breached $114 a barrel for the first time
in more than two-and-a-half years as unrest in the Middle East spread from Libya to Iran. Oil jumped
by as much as 2.3% to a fresh high of $114.36 as police in Tehran used tear gas to disperse anti-government
protesters and the US government warned that Libya could descend into civil war if Muammar Gaddafi remained
defiant and refuses to quit.
The Editor says...
Oh, but rest assured that if Muammar Gaddafi resigns and exiles himself, the price of oil will
immediately zoom back down!
Oil jumps above $103 as Libya
crisis escalates. Oil prices surged in electronic trading Monday [3/21/2011] after coalition
forces launched an attack on Libyan military targets over the weekend. The benchmark U.S. contract,
West Texas Intermediate, gained as much as $2.28 to top $103 a barrel for April delivery.
Oil - near $106 and rising.
Crude oil prices moved above $106 a barrel again Thursday [3/24/2011] before retreating, as a confluence
of war, natural disasters and Japan's nuclear problems unnerved investors. The benchmark U.S.
contract, West Texas Intermediate, dropped 15 cents, or 0.55%, to settle at $105.60 a barrel for
May delivery. In early trading, the price peaked at $106.69.
Oil settles above $111 per
barrel. Oil settled above $111 per barrel Wednesday [4/20/2011] as the dollar weakened and
the government reported an unexpected drop in U.S. crude supplies.
Oil Rises to Near $99 on Weaker US Dollar.
Oil prices rose to near $99 a barrel Monday [5/9/2011] in Asia, bouncing back from last week's plunge, as a
weaker U.S. dollar made commodities less expensive for investors with other currencies.
Crude oil settles above
$103 a barrel. Oil rose on Tuesday [5/10/2011] after some early losses as investors tried to
gauge where the market is headed. Gas pump prices fell for the fifth day after flirting with a
national average of $4 per gallon last week.
Oil jumps 4 percent
on Iran anxiety. Oil prices surged on Tuesday [1/3/2012], with U.S. crude hitting the highest
settlement since May, fueled by strong economic data from the United States and China and mounting concern
about supply disruption from Iran.
Of High Gasoline Prices Already? We Ain't Seen Nothing Yet. It's not even March yet and already the
groaning has begun over ramping gasoline prices. Nationwide the average gallon of gas cost $3.59 last week.
That's up big from $3.19 the same time last year. U.S. oil prices, benchmarked to West Texas Intermediate
are $104 a barrel, versus just $85 a year ago.
Oil Rises to $110 on Report of Pipeline
Explosion. Futures reached $110.55 at 3:17 p.m. [3/1/2012] in New York after Iran's Press TV reported on its
English-language website that "an explosion has hit oil pipelines in the flashpoint Saudi Arabian city of Awwamiya," then fell
back below $109.
Oil and Gasoline Prices.
Actual oil prices are unknown to most Americans. ... A few of us know that the price of U.S. crude oil is always
cheaper than the price of foreign OPEC crude oil. Some of us know that because we have followed "World Crude
Oil Prices" on the website of the Energy Information Administration (EIA) of the U.S. Department of Energy for
years. On November 11, 2011, the EIA shut down the World Crude Oil Prices website. EIA did
not even leave up the valuable historic data on the website. The Obama administration has hidden actual
oil prices from the public. That should be a scandal.
Crude oil drops sharply.
Crude oil prices dropped sharply on the New York Mercantile Exchange Monday [6/12/2012] as the White House said the market could tolerate
less oil from Iran. [...] West Texas Intermediate crude oil for July delivery in New York dropped $2.63 Monday to $81.47 per barrel.
Oil slips lower
below $86 on slowing China trade. Oil slipped further below $86 a barrel Tuesday [7/10/2012] after weak Chinese
trade figures suggested the economic slowdown in the world's second-largest crude consumer is deepening and the government in
Norway ordered the end of a labor strike in the oil sector. By early afternoon in Europe, benchmark oil for August
delivery was down 14 cents at $85.85 a barrel in electronic trading on the New York Mercantile Exchange. Crude
rose $1.54 to settle at $85.99 on Monday [7/9/2012] in New York.
Oil surges after Bernanke speech.
Crude oil prices surged Friday [8/31/2012], lifted by a weaker dollar on remarks by US Federal Reserve chief Ben Bernanke
and by a slow return of Gulf of Mexico production after Hurricane Isaac. New York's main contract, light sweet crude
for October, was up $1.85 at $96.47 a barrel in closing trade around 2000 GMT ahead of a long holiday weekend.
Oil Rises on Stimulus Speculation.
Oil rose on speculation central banks will take more steps to boost growth after manufacturing unexpectedly contracted in China. Prices gained as much as 0.9 percent
as equities rallied amid expectations that policy makers would enact stimulus measures to spur expansion.
The Oil Price Enigma. Oil is the single
most important commodity purchased today, and its price influences the fortunes of every nation on the planet in significant ways.
Yet nobody can tell you with honesty that they know where the price is headed.
The Price of Oil from 1861 to 2010.
There have only been three major oil price hikes in American history, the most recent occurring this past decade. Increased demand in
developing countries, such as China and India, and stagnant global oil production are partly to blame. To keep the price of oil low, oil
production must increase — or traditional fossil fuel demand must be offset by an increase in the supply of
Oil Settles at Highest Level Since May 2012.
U.S. crude oil prices settled Friday [7/5/2013] at their highest level since May 2012 amid positive U.S. economic data and concerns that instability in Egypt could
lead to supply disruptions. The Labor Department said about 195,000 jobs were added in June, beating expectations for 165,000 jobs. Results from the two
prior months were revised higher by a combined 70,000 jobs, although the unemployment rate remained at 7.6%.
crisis: oil spikes to three-year high of $112 a barrel. Oil has spiked to a
three-year high of more than $112 a barrel on growing fears of a supply shock triggered by
escalating tensions in Iraq as al-Qaeda forces seized control of Mosul, Tikrit and Samarra.
Benchmark Brent crude rose $2 to $112.29 at one stage in morning trading [6/12/2014] in London, a level last
seen during the Arab Spring, amid concerns that 3.5m barrels a day of Iraqi exports could be
knocked out of the market by the violence.
Oil Rises Just Above
$102 A Barrel. The price of oil traded around $102 a barrel on Friday [7/25/2014],
nearly unchanged, as worries over supplies and geopolitical tensions eased.
prices free fall: Why Venezuela stands to lose the most. Oil prices continue to slide,
putting enormous pressure on oil producers around the world. Saudi Arabia has insisted it is
willing to live with lower prices for quite a while as it seeks to maintain a grip on its market
share. Kuwait also indicated its willingness to slash prices in order to keep output level. That
sent oil prices lower on Oct. 14, as the markets reacted with a bit of surprise to the unwavering
stance by OPEC's leading members: WTI dropped 4.5 percent.
oil settles down $1.75, or 5.28%, at $31.41 a barrel. A brutal new year selloff in oil markets deepened on Monday [1/11/2016], with
prices plunging more than 6 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude into the
$20s. On Monday, China's blue-chip stocks fell by another 5 percent and overnight interest rates for the yuan outside of China soared
to nearly 40 percent, their highest since the launch of the offshore market.
Falls Below $30 a Barrel for the First Time in 12 Years. Oil dropped below $30 a barrel in New York for the first time in 12 years
on concern that turmoil in China's markets will curb fuel demand. West Texas Intermediate crude tumbled to the lowest since December 2003.
Concerns that China's economic growth may slow has soured investors on the prospects for a quick recovery, turning hedge funds the least bullish in
five years. A rapid appreciation of the U.S. dollar may send Brent oil to as low as $20 a barrel, Morgan Stanley said.
Nosedive as Global Oil Prices Plunge. After two days of gains in the oil patch, global crude prices resumed their
downward trend, falling below the psychologically-significant $30 a barrel. West Texas Intermediate crude prices dipped
as low as $29.13, the lowest level since November 2003. In recent action, WTI plunged 6% to $29.33, while Brent, the
international benchmark, dropped 5.9% to $29.05 a barrel.
Glut Continues as Prices Drop to $44 a Barrel. Oil on Tuesday [7/26/2016] hit its lowest since May, falling
towards $44 a barrel, pressured by concerns that a long-awaited rebalancing of the market would be delayed due to excess
supply. Brent crude is still up more than 60 percent from a 12-year low near $27 in January, but the rally has petered
out on signs that the supply glut will persist and as economic jitters raised concern about the strength of oil demand.
Drops 10 Percent; Price Decline Just Beginning. Midday last Thursday [10/27/2016], the price of crude oil for delivery in
December touched $50, and it's been all downhill since then. At noon on Wednesday crude oil futures touched $45 a barrel on
news that inventories soared last week by the most in 34 years. The market wasn't expecting that. It was bad enough that
the American Petroleum Institute (API) reported a supply increase nine times greater than analysts and observers were expecting last
week. Those market seers were betting on an increase of a million barrels. Instead the API reported the increase was
9.3 million — a miss of gigantic proportions.
slips towards $69 ahead of U.S. supply report. Oil slipped towards $69 a barrel on Thursday [1/18/2018], weighed down
by a reported rise in U.S. fuel stocks and expectations that OPEC-led efforts to boost prices by cutting output will increase supply
from the United States and other rivals.
are continuing to rise — here's why. Oil prices go up when there is potential trouble in one of the
energy producing regions of the world, even if the trouble never actually happens. And when oil prices rise, so too do
gasoline prices. And when the trouble abates, gasoline producers and sellers have no incentive to lower prices
quickly. Would you lower the prices you are paid — and the income you make — if nobody was
pressuring you? No, you wouldn't. And since the media have now bought into the belief that the market —
meaning supply and demand — controls energy prices, there isn't even the press' oversight.
Oil Shortages Morphed Into Foreign Aid. Our domestic oil industry seems to have found itself in uncertain
times. It's not a price shock like mid-2014 to early 2016 or even a slide like that of last winter. Operational
challenges are being encountered. Investors are done with financing growth and want to see returns instead.
Bankruptcies are on the rise. Compounding this picture is politics, from strife in OPEC (Organization of Petroleum
Exporting Countries) to climate change extremists' drive for the industry's total disappearance. While these exogenous
factors, much like supply swings, can certainly put short-term pressure on prices, there's one consistent reason for medium-
and long-term volatility: U.S. monetary policy.
could fall below zero: Analyst. Plunging oil prices could be headed a lot lower — possibly
below zero, according to one Wall Street analyst. West Texas Intermediate crude oil, the U.S. benchmark, fell by more
than 10 percent Wednesday [3/18/2020] to near $24 a barrel, a level last seen in April 2002. "Oil prices can
go negative," wrote Paul Sankey, managing director at Mizuho Securities.
prices drop below $0 for the first time in history. On Monday afternoon, oil prices hit an all-time low,
dipping below $0 for the first time in history. Traders blamed the drop on the expiration of the May futures contract
on Tuesday coupled with a sharp decline in demand amidst the coronavirus shutdowns. According to NPR, at the start of
the year, a barrel of West Texas Intermediate crude oil — a key benchmark for U.S. oil prices — was
around $60. Due to the coronavirus pandemic, prices dropped steadily to just $18 a barrel Friday [4/17/2020].
Oil below zero:
Here's what happened. During Monday's [4/20/2020] session, West Texas Intermediate crude oil futures for May
delivery cratered by 305 percent to -$36.73 a barrel. At any price below zero, buyers are paid to take delivery as
there are costs associated with transportation and storage. WTI closed at its lowest level since recordkeeping began in
March 1983, according to Dow Jones Market Data. It is unclear whether there was a specific catalyst that sparked the
sharp one-day selling, but President Trump remarked the decline was a once in a lifetime event.
Oil crashes 305% to -$36.73 a
barrel. U.S. oil prices plummeted in historic fashion Monday [4/20/2020], crashing below zero as traders unloaded positions
ahead of the May contract's Tuesday expiration. West Texas Intermediate crude oil futures for May delivery cratered by
305 percent to -$36.73 a barrel. At a price below zero, buyers would be paid to take delivery as there are costs
associated with transportation and storage. The selling had WTI on track to close at its lowest level since recordkeeping
began in March 1983, according to Dow Jones Market Data. The June contract was trading lower by 18 percent at $20.43
For Plunging Oil Prices? Take Economy Out Of Quarantine, ASAP. Global oil prices crash through the floor,
imperiling a major industry and millions of jobs. Time for government action to fix the problem with a bundle of cash
and handouts? Nope. We have a better idea. Restart the U.S. economy and put an end to the quarantine
economy as soon as possible. Monday's [4/20/2020] oil news that near-term oil contracts had fallen below zero was
frightening. Essentially, the markets told those holding short-term oil contracts they would have to pay someone to
take their oil. It's not even worth transportation and storage costs.
crude oil tops $130 a barrel, a 13-year high on possible Western ban of Russian oil. Oil prices continued to
surge in Monday morning trade as the market reacted to supply disruptions stemming from Russia's ongoing invasion of Ukraine
and the possibility of a ban on Russian oil and natural gas. West Texas Intermediate crude futures, the U.S. oil
benchmark, spiked 6.6% to trade at $123.36 per barrel. At one point the price rose to $130.50 Sunday evening [3/6/2022],
its highest since July 2008, before retreating. The international benchmark, Brent crude, advanced 6.3% to $125.60 per
barrel. Brent hit a high of $139.13 at one point overnight, also its highest since July 2008.
surges above $2,000 to near an all-time high; palladium rises to a record. Gold futures climbed above $2,000 an
ounce on Tuesday, but settled below their highest price on record, as the war in Ukraine fueled bids for safe haven assets
like bullion. Gold's surge today [3/8/2022] and in recent sessions is "not only a reaction to the Ukraine situation,
but also a sign that shorts in the futures markets are abandoning their battle to keep the price corralled," said Brien
Lundin, editor of Gold Newsletter.
Flashback to 2005: $55 oil
won't last. When I put a $55 barrel of oil on the table and look at it
from all angles, there's no way the current price can be justified. As a free-market
disciple, I am compelled to accept the market's verdict: $55 a barrel. But that
doesn't mean it's going to last.
Surges After Energy Department Says No Plan To Tap Oil Reserves. So much for the threat that the Biden admin
would sell oil from the Strategic Petroleum Reserve. Moments ago, in response to mounting concerns that the US would
sell up to 60 million barrels of oil from the SPR, the Energy Department has no plan to take action "at this time" to tap
into the nation's oil reserves, an Energy Department spokesperson said Thursday [10/7/2021]. The comments come after a
report yesterday about U.S. energy secretary Jennifer Granholm raising the prospect of releasing crude oil from the strategic
Oil Prices Are About To Plunge Again: 31 Million Barrels In Floating Storage Are Coming On Shore. One week ago,
we wrote that as a result of the collapsing crude contango, oil tankers (such as the fully loaded Distya Akula which has been
on anchor in the Suez Canal for one month unable to find a buyer for its cargo so it continues to wait) "will soon have to
unload their cargo", in the process flooding the already oversupplied market with millions of barrels of crude oil, thus
pushing the price of oil far lower. But how many millions of barrels, and how much lower will the price of oil go?
bills to be higher this year. The combination of high prices — averaging $3.80 a gallon this season — and colder
weather will drive fuel bills for heating oil consumers to around $2,500, on average, this winter, according to the US Energy Information Administration.
That's more than any previous winter on record, and roughly $400 more than consumers spent last season.
Irrational, Non-Economic Exuberance Underlying Hydraulic Fracturing. Contrary to the widely held belief
that oil is scarce at the moment, the greater truth is that oil isn't expensive as much as the dollar is cheap.
Measured in the constant that is gold, an ounce of the yellow metal buys roughly the same amount of oil today
as it did in 1971 when a barrel of oil traded for around $2.50. Far from an energy crisis rooted in a
short supply of oil, we have at present a dollar crisis that is creating the false illusion of energy scarcity.
price set to soar as supply falls short of demand. The oil price is tipped to rise this year as
supply falls short of demand, fuelling volatility across commodities markets. JPMorgan's New York-based
oil research global head, Lawrence Eagles, said yesterday [6/8/2011] the investment bank expected oil would
rise to $US130 a barrel by the third quarter.
Analyst predicts $200 oil could happen this year.
A Goldman Sachs analyst predicts that oil prices could reach $150 to $200 a barrel over the next 6 months to two years,
but said that how far prices could climb still "remains a major uncertainty." "We believe the current energy crisis may
be coming to a head, as the lack of adequate supply growth is becoming apparent," analyst Arjun N. Murti wrote in a
Will Oil Really Hit $200 a
Barrel? Once again, many market participants appear to believe that oil prices can only go up. It seems
that the painful lessons of the 2001 dot-com bust have been forgotten, as have the lessons of the much more recent U.S.
housing crash. In their state of forgetfulness, many pension funds and insurance companies have built up very large
open positions in the oil futures market. These positions are now estimated to total over $200 billion, roughly
the equivalent of a full year of Chinese oil demand.
ominous warning that the rapid rise in oil prices has only just begun. The chief executive of the
world's largest energy company has issued the most dire warning yet about the soaring the price of oil,
predicting that it will hit $250 per barrel "in the foreseeable future". The forecast from Alexey Miller,
the head of the Kremlin-owned gas giant Gazprom, would herald the arrival of £2-per-litre petrol and send
shockwaves through the economy.
oil predicted by 2012. Prepare for gasoline prices to hit $2.25 a litre by 2012 and for crude oil to soar to
$225 US a barrel as scant supply growth delivers us into the "age of scarcity," says CIBC World Markets chief economist
Jeff Rubin. "Our latest review of probable supply suggests oil production will hardly grow at all, with average daily
production between now and 2012 rising by barely more than a million barrels per day. He said there has been no
growth in oil supply over the past two and half years .
warn of oil price bubble. The flood of speculative investment into oil markets is inflating a
price bubble that could pop and send crude prices sharply lower if U.S. petroleum demand continues to slump,
analysts warned yesterday. Crude prices continued their remarkable rally yesterday, rising 95 cents
to close at another record high of $105.47 on the New York Mercantile Exchange.
The Editor says...
Having lived in west Texas for many years, I can tell you that when a crude oil bubble bursts,
things can get really messy.
A Primer on Oil Prices. "The tripling of
oil prices since the summer of 2003 has unleashed forces that within the next two or three years will bring oil prices
tumbling back down to below $50 a barrel." So said John Cassidy, writing about "The Coming Oil Crash" in the January
issue of Conde Nast Portfolio. Yes, the price of oil will come down, though no one knows exactly when.
Cheap Oil to Last,
"Doomsday" Fears Overblown, Author Says. Is the era of cheap oil really at an end? Or
could a glut send prices into a freefall? Should Western countries fear energy blackmail from oil-rich
powers? There's no crystal ball to predict oil's future, but Leonardo Maugeri believes that much can be
learned by looking at the industry's past.
Oil price 'abnormal' but
$US78 achievable. Crude oil prices above $US120 a barrel are "abnormal" and could fall to about
$US78 under the right circumstances, OPEC president Chakib Khelil said in Jakarta yesterday. "If the
dollar continues to strengthen and the political situation (regarding Iran) improves, then the long-term
prices will be about $US78," Mr Khelil said, adding the market was well supplied with oil.
Flashback to 2006... Oil
prices appear headed for $70. While last summer's price spike triggered outrage in the US
Congress and hurt sport utility vehicle sales, it caused only a hiccup in motor-fuel consumption. And
for now, with demand back on the rise, the economy seems capable of absorbing uncomfortably high prices.
of $200 oil by year's end quietly fades. Talk of $200-per-barrel oil prices
by the end of the year has quietly faded away and been replaced by forecasts for $100. It
would be easy to say that crude oil has failed to meet market expectations, and a bear market may
be in place. But the harder part is to figure out how long and to what point oil prices
What to Make of
Oil's Weakness. Given the strong price correlations between the two commodities, many economic
commentators wrote of the gold/oil relationship in terms of a 15:1 ounce/barrel ratio. As the late Warren
Brookes wrote in his 1982 book, The Economy In Mind, "In 1970 an ounce of gold ($35) would buy 15 barrels
OPEC oil ($2.30/bbl). In May 1981 an ounce of gold ($480) still bought 15 barrels of Saudi oil ($32/bbl).
Oil May Fall to $50 in Global
Recession, Merrill Says. Crude-oil prices may fall as low as $50 a barrel next year, about half current
levels, in the "unlikely" event of a global recession, weighing on shares of petroleum producers, Merrill Lynch & Co.
said. ... Merrill cut its 2009 average price estimate for West Texas Intermediate, the U.S. benchmark oil grade, by
16 percent to $90, citing falling demand and the start of new fields in [OPEC] Countries.
The Worst Predictions About 2008:
[#7] "I think you'll see (oil prices at) $150 a barrel by the end of the year" — T. Boone
Pickens, June 20, 2008. Oil was then around $135 a barrel. By late December it was below $40.
2009: Wild Ride Ahead for Oil
Prices. Many of my colleagues have remarked that since supply and demand fundamentals
in 2008 were not that different from historical levels, and prices approximately six times the hundred
and fifty year mean, economics could not explain the elevated prices. Which might be true, but an
economist can and did.
Low prices are behind
us. Crude closed at $33.87 a barrel earlier this winter, and that's likely the lowest we'll see for some
time. Oil prices crossed the $50 a barrel mark Thursday [3/19/2009], the first time since early January.
Thursday's uptick is largely due to the falling dollar, but the underlying fundamentals in the oil market indicate
low prices are behind us.
Saudi Arabian Oil
Minister Naimi Says Oil to Reach $75 a Barrel. Saudi Arabian oil minister Ali al-Naimi said the
price of oil will climb to $75 a barrel when demand picks up. "We'll get there eventually," al-Naimi told
reporters in Rome today [5/23/2009] where he will attend meetings with energy ministers from the Group of Eight industrialized
nations. "The trick is keeping it between $70 and $80. It will be achieved as demand rises and the
fundamentals are better than they are now."
Energy Expert: Oil to $20 a Barrel.
There could be a potential "tax break" the no one in the news has really picked up on with this ailing economy —
a big drop in the price of oil. Although the media hype price increases, oil prices are dropping and could be
heading toward lows not seen since 1999.
point for oil seen at $150 per barrel. A top Federal Reserve official on Monday [3/7/2011]
said the central bank should react if oil prices soar as high as $150 a barrel because prices that high could
throw the economy back into recession. Meanwhile, the White House is considering releasing oil from the
Strategic Petroleum Reserve to curb the rapid rise in prices since unrest broke out in the Middle East last
month. Within weeks, the price of premium crude has jumped from near $90 to more than $106 per barrel
in New York trading Monday [3/7/2011].
in Oil Prices a Result of the Decline of the Dollar. The rise in oil prices is not due to the laws of
supply and demand regarding oil. It is the result of the continued fall of the dollar. As the Federal
Reserve creates more money, the value of the dollar falls. As the value of the dollar falls and oil producers
demand more and more for each barrel, the price of crude goes up. Despite what the politicians say about the
oil companies, the greatest component of the price of gas is the cost of crude. Crude oil is about 67% of the
price per gallon, 7% for refining, 11% for distribution and marketing, and 15% for taxes. Blaming the oil
companies may be good for politics, but it is not good economics.
Demand Flashes Red, Sending Crude Prices Even Lower. It isn't just that there is too much oil sloshing around
the world. All of a sudden, there are fears of too little demand for the stuff too. Oil prices continued to
tumble Thursday, falling as much as 4%, with Brent crude, the international benchmark, falling to its lowest levels in
15 months. The U.S. benchmark, West Texas Intermediate, traded for $46.61 early Thursday [12/20/2018] and is down
almost 40% since a high in October.