Cold weather spurs on rising oil prices [allegedly]greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread |
Financial Times - L O N D O NCrude oil prices reached nine-year highs Friday, as cold weather in the US and fears of dwindling heating oil stocks sent markets racing.
Brent crude futures hit $27.11 a barrel as London's International Petroleum Exchange took its cue from the New York Mercantile Exchange, where light crude futures almost reached $30 a barrel on Thursday night.
Oil prices have staged a remarkable reversal from historically low prices last year, thanks to production restraint by members of the Organisation of Petroleum Exporting Countries. [and y2k problems]
Peter Gignoux, an analyst with Salomon Smith Barney, said: "The Monday before last [Nymex] was $24 a barrel - now it's up to $29.95 and heating oil is up 8.5 per cent. There is very strong momentum. We could have a fall-back of 10 per cent without beginning to threaten the momentum of this market." [make that 20%]
On Thursday the Paris-based International Energy Agency warned that continued producer restraint would create a global supply shortfall of 2m-3m barrels per day in the first quarter of this year and 1m-1.5m b/d in the second quarter. [oops - INFLATION]
However, Mr Gignoux dismissed comparisons with the 1970s oil crisis. "We don't have a sustained high price yet - we just have a blip." [ he means BITR surely - Andy]
In spite of the meteoric price rise last year, the increases were not as inflationary as they had been two decades ago when industrialised nations were more dependent on oil. Mr Gignoux estimated the average price of US oil to be $18 a barrel in 1999 - $1 less than in 1987. {spot on old chap - not]
However, Otmar Issing, chief economist at the European Central Bank, warned yesterday there was a danger that the temporary rise in inflation due to surging oil prices would become more permanent if it led to higher wage settlements. [no shit sherlock...]
Opec members favour extending the production curb beyond March. Yesterday ministers from Iran, Algeria and Libya indicated after a meeting in Tripoli that they would push for a six-month extension at Opec's meeting on March 27. However, Saudi Arabia has said it will not allow prices to threaten economic growth. The dramatic rise in oil prices is set to result in strong fourth-quarter earnings for the big US oil companies, which are due to report results in the coming week.
[all pure spin]
-- Andy (2000EOD@prodigy.net), January 22, 2000
In spite of the meteoric price rise last year, the increases were not as inflationary as they had been two decades ago when industrialised nations were more dependent on oil.So,in the last 20 years industrialised nations have becomelessdependent on oil?Stupidest thing I've ever heard.
-- Dragnet (just@the.facts), January 22, 2000.
Pro my friend, the difference between myself and you - I'm a realist, believe it or not. Too bad you've been banned you occasionally used to make some sense. It'll never be a 10, for that we are all truly grateful. However, the US has treated other countries appallingly - look at the gulf war, the millions dead and irradiated, gulf war syndrome. There is no love lost in the Arab world for the great satan. Think about it. add in y2k problems, economic and monetray problems, and stir. You tell me what the hell is going on.
-- Andy (2000EOD@prodigy.net), January 22, 2000.
There was a report in the news last fall that Clinton was considering purchasing an extra stockpile of heating oil for the Northeastern part of the country in order to keep consumer prices from rising during the winter. Does anyone know whatever happened, did the gubmint buy the extra oil? It would appear they didn't since this is what they had hoped to prevent.
-- Hawk (flyin@high.again), January 22, 2000.
Bold off
-- Hawk (flyin@high.again), January 22, 2000.