Oil hits record $63.99 on security threat - Yahoo! News
OK, why is it that when the price per barrel goes up, the price at the pump instantly goes up? But yet, the next day when the price drops, the excuse is, "well, we had to pay for the more expensive gas yesterday...." If you are going on future prices, wouldn't it follow that the price should instantly drop?
$2.55 regular at my local station in the hood.
LONDON (Reuters) - Oil prices hit a new record high near $64 on Monday after warnings of militant attacks in the world's biggest oil exporter Saudi Arabia and on worries about refinery outages in the United States.
U.S. crude was up $1.49 at $63.80 a barrel at 1725 GMT after peaking at $63.99. London Brent crude was up $1.49 at $62.56 a barrel after touching $62.70.
As the United States shut its diplomatic missions in Saudi Arabia in response to threats, Britain warned that militants were in the final stages of planning strikes in the kingdom.
"The latest security threats in Saudi Arabia, even though they're not directed at oil installations per se, and the continuing refinery issues are having a supportive role," said Marshall Steeves, an analyst at Refco Group in New York.
Concerns over the Saudi security situation coincided with news that another U.S. refinery had run into output problems, adding to pressure on gasoline supplies in the world's biggest consumer during peak summer demand.
News that OPEC's second largest producer Iran had resumed its nuclear work, despite European Union warnings of possible United Nations sanctions, further strained nerves.
In real terms, stripping out inflation, oil is still below the $80 a barrel on average for the year after the 1979 Iranian revolution.
But at an average of more than $53 for the year to date for U.S. crude, prices are well above those during the 1974 Arab oil embargo.
I get it. Someone says "boo" and the price will rise.
Boy, I'm sure glad we gave all those tax breaks to the oil companies! Just think where prices would be without them! < /sarcasm >