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Next petrol price increase imminent??

Garlic

By Garlic,
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Garlic

Garlic

1st Gear

Source: http://sg.news.yahoo.com/afp/20080422/tts-...ce-c1b2fc3.html

 

Oil prices climb past 118 dollars for first time

 

AFP - 1 hour 52 minutes ago

 

LONDON (AFP) - - The price of New York crude rocketed to a record high point of 118.05 dollars per barrel on Tuesday, lifted by unrest in Nigeria, weakness of the dollar and OPEC's reluctance to raise short-term output.

 

Later on Tuesday, New York's main oil futures contract, light sweet crude for delivery in May, stood at 117.77 dollars, up 29 cents from the price on Monday. The contract expires at the close.

 

London's Brent North Sea crude for June hit a historic pinnacle at 115.03 dollars a barrel. It later stood at 114.67 dollars, up 24 cents.

 

"For the moment, there does not seem to be anything stopping the price juggernaut we are seeing in energy," said MF Global analyst Ed Meir.

 

The Organization of Petroleum Exporting Countries (OPEC) plans to lift production capacity by five million barrels per day (bpd) by 2012, the cartel's secretary general Abdalla Salem El-Badri said on Tuesday.

 

Speaking to reporters on the sidelines of the International Energy Forum in Rome, El-Badri also said that the cartel aimed to boost production capacity by nine million bpd by 2020.

 

However, the 13-nation OPEC cartel, which produces 40 percent of the world's oil, has insisted that there was no shortage of supplies in the market.

 

"The market is still fairly tight, with OPEC reluctant to hike output, blaming speculators and the broad weakness in the dollar for driving prices higher," said Sucden analyst Andrey Kryuchenkov.

 

Analysts said reports of pipeline sabotage in Nigeria has helped push prices to record heights.

 

Nigerian Energy Minister Odein Ajumogobia said Tuesday that there would be "no significant" interruptions of oil supply following an attack on pipelines of Africa's top oil producer.

 

"There is no significant disruption, between 25,000-30,000 barrels per day. But it's being fixed and it could be back online quickly," Ajumogobia told reporters in Rome.

 

The Movement for the Emancipation of the Niger Delta (MEND) militant group, active in the west African country's oil-rich south, claimed responsibility for an attack on Shell's key Bonny terminal in an e-mail on Monday.

 

Anglo-Dutch oil firm Shell said on Monday that it may not be able to honour contracts for April and May after MEND attacked two key pipelines.

 

"Concerns remain regarding Nigerian supplies, where force majeure has been called on several delivery contracts following an escalation in militant activity," said analysts at energy consultancy John Hall Associates.

 

Overall, violence in the southern Delta region has reduced Nigeria's total production by a quarter since January, 2006.

 

Global supply concerns have also been rattled by the forthcoming closure of the 200,000 barrels-per-day Grangemouth refinery in Scotland, which faces a two-day strike this Sunday.

 

In Rome, the International Energy Agency's executive director Nobuo Tanaka warned that high oil prices could tip the world economy into recession.

 

However, he has agreed with OPEC's stance that markets are currently well supplied, while attending the joint producers and consumers forum.

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Blackyv

Blackyv

Turbocharged

i think this is the biggest wayang show ever... the cartel says no shortage, blame the speculator and who are the speculator????....see the amount of revenue they generate for themselves,with all time record high every year, this is purely a one man show the very same person who act as the director, the actor and the producer.... [sweatdrop]

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Leepee

Leepee

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Are we living in denials once more thinking that this high oil price will soon come down once the speculators have earned their keeps?

 

Deep down, many car owners are dreaming of future oil price drop, so that we can continue our car ownership for a long time to come.

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Zniper

Zniper

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idiot... they blame it on the deflates of US currency... but since our currency is stronger than them, i dun see a point y sg kept increasing the petrol price... as it's substantial enough to cover the conversion of the currencies... wan to earn our money more and more than say directly lah... [furious]

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Stary

Stary

Turbocharged
Are we living in denials once more thinking that this high oil price will soon come down once the speculators have earned their keeps?

 

Deep down, many car owners are dreaming of future oil price drop, so that we can continue our car ownership for a long time to come.

 

I have already said in the past that oil price will continue to go up, don't even hope it will come back down to 45-50 bucks.

 

By 2010, I think it will be close to 200 a barrel.

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