Oil passes $ 120, a list of gas prices over one hundred
Tuesday, May 6, 2008 | | 0 comments |Oil passes $ 120, a list of gas prices over one hundred NEW YORK - Oil futures jumped to a new record of more than $ 120 a barrel Monday, expressed concern about higher prices for gasoline and goods and services throughout the economy. Gas prices at retail fell by more than one cent during the weekend, but the advance of oil has increased the risk that prices at the pump will resume their ascent. ADVERTISING Supply threats that have emerged overseas and a weaker dollar sent light, sweet crude for June delivery to a new trading record $ 120.36 a barrel on the New York Mercantile Exchange before term has fallen slightly to settle to $ 3.65 at a record $ 119.97. Oil surge this year has pushed gas prices to unprecedented levels, prompting consumers to reconsider summer vacation plans and limit the daily excursions, they are also less spending on shopping malls and shopping malls because they are not only paying more for fuel but also for all types of goods and services. Americans are also pinched by tight credit conditions, a sluggish labour market and a slowdown in the housing market. "American consumers have been hit hard financially by a bunch of different directions," said Troy Green, a spokesman for AAA. The national average price of a gallon of regular gas dropped to $ 3611 a gallon on Monday, down 1.1 cents from Friday, according to AAA and the price of oil Information Service. Prices reached a record level of $ 3623 a gallon Thursday. But if oil prices continue climbing, gas prices could rise higher than $ 3.75 a gallon on a national basis, Mr. Green said that if, "in some places it is already above $ 4 a gallon." In most years, gas prices peak in early May or June, then the decline mostly for the rest of the year. But oil at $ 120 - and rising - may force the experts to rewrite their rules. The combination of factors that drove oil to its latest disc have been a microcosm of the forces that have almost doubled the price of oil levels of about $ 62 a barrel a year earlier. The dollar weakened against the euro on Monday, attracting investors to commodities such as oil they see as a hedge against inflation. Also, a weaker dollar makes oil cheaper for investors overseas. A series of Federal Reserve rate cuts starting last year, the dollar weakened considerably against foreign currencies, analysts responsible for the declining dollar extended oil surge this spring. Supply outages or threats emerged in Iraq, Nigeria and Iran on Monday; events in the three countries have caused prices to peak repeatedly in recent months. In Iraq, Kurdish warned the rebels they could launch suicide attacks against American interests to punish the USA for sharing intelligence with Turkey after Turkey bombed rebel bases in Iraq on Friday. In Nigeria, Royal Dutch Shell PLC said spokesman assailants struck an oil installation belonging to Shell joint venture in southern Nigeria and that oil production was closed. And Iran's Supreme Leader Ayatollah Ali Khamenei said his country would not bow to international pressure and abandon its nuclear program. Developing energy investors concerned any time a conflict erupts or is threatened in the oil-rich Middle East. Years of unrest in Nigeria have cut nearly a quarter of major U.S. supplier of oil production. Beyond occasional threats to crude supply, global demand for oil continues to grow. While demand for oil and gasoline was mild in the USA, the Chinese and Indian economies are growing by double digits, strengthening global demand for oil. Prices for diesel fuel declined Monday, slipping to a national average of $ 4239 a record $ 4251 on Thursday. The runup in the price of diesel used to power most trucks, trains and ships, is one reason why food prices are so high. Andy Lebow, senior vice president at MF Global Inc., said that the drop in gas prices last four days are almost entirely due to falling crude oil last week, prices have dropped from $ 119.93 on Monday as little that $ 110.30 on Thursday before rebounding. Gas prices tend to follow prices in the futures market, but with some discrepancies. "If oil prices remain high, we could see gas prices to rise another 10 to 15 cents," Green said. It is impossible to say whether gas prices will be this summer, as they have in the past, "said Green. However, he noted that demand for gasoline has declined since the beginning of this year, a sign that high prices are cutting U.S. appetite for fuel. Analysts believe the decline in demand is to prevent refiners to raise gas prices quickly enough to monitor oil prices, they buy a lot to turn into fuel. While oil prices have increased by almost 94 per cent in one year, gas prices are up only 19 percent. In other Nymex trading Monday, June gasoline futures rose 8.65 cents to settle at $ 3.0529 a gallon, and June heating oil futures rose 8.78 cents to settle at 3.3065 $ Gallon. June natural gas futures rose 40.1 cents to settle at $ 11,178 for 1,000 cubic feet. In London, June Brent futures gained $ 3.43 to settle at $ 117.99 a barrel on the ICE Futures Exchange. | ||||
 |
