Building a world of
resilient communities.

MAIN LIST

 

Oil prices shoot up to new record

Oil prices have surged to fresh record highs again after a surprise drop in US petrol stocks added to worries about a gathering storm in the Caribbean.

Tropical Storm Katrina could threaten oil production in the Gulf of Mexico, analysts warned, while a 2% slump in US supplies signalled a thirsty market.

US light crude closed at a new high of $67.40 a barrel, up $1.69 on the day, topping the previous high of $67.10.

Meanwhile, in London, Brent crude closed up $1.36 to $66.01 on Wednesday.

News that Iran's parliament had rejected the new president's choice of oil minister also spooked markets, analysts said.

This drew an unwelcome question mark over oil policy in the Opec cartel's second-biggest producer.

Jittery markets

Oil traders fear if Katrina gets out of hand there could be a repeat of the months-long disruption to oil and gas production last year in the Gulf of Mexico which was triggered by Hurricane Ivan.

The peak period of hurricanes in the region is usually from August to September so traders are on tenterhooks.

"The fear of a replication of that is going to keep the market on its toes and we could easily test $70 a barrel," said Marshall Steeves, analyst at Refco Group.

In its weekly petroleum supply report, the US Energy Department said domestic stocks of gasoline fell by 3.2 million barrels last week to 194.9 million barrels.

However, other traders said supplies of oil, natural gas, petrol and other products were adequate for this time of year.

The ongoing rally in oil prices was more a reflection of fears about unexpected disruptions in supplies at a time when demand is strong, they explained.

"A lot of this is 'just in case' buying," said oil broker Mike Fitzpatrick at Fimat USA.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Make connections via our GROUPS page.
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

Tags:  

Update on US natural gas, coal, nuclear, renewables

On August 6, I wrote a post called Making Sense of the US Oil Story, in …

The Peak Oil Crisis: When?

 The key question is just how many more months or years will production …

Community energy in Ireland: the technological aspects

It is important to keep in mind that technologies aren’t neutral.

Peak Oil Review - Aug 25

 A weekly review including: Oil and the Global Economy, The Middle East …

Tar sands, trade rules and the gutting of human rights for corporate profit

A new report released today from IATP takes an in-depth look at how tar …

Energy Crunch: [redacted]

The government’s case for shale looked increasingly shaky last week as …

Could BC Become a 100% Renewable Energy Region?: Trucking, Ships and Planes

How can we switch BC’s freight transportation from diesel and gasoline …