Oil hits $100... gold breaks record

[HoosierRon]

Oil Futures Rise to $100 a Barrel

NEW YORK (AP) -- Crude oil futures on the New York Mercantile Exchange hit $100 a barrel in intraday trading Wednesday.
Oil prices jumped sharply, setting a new trading record on supply concerns sparked by renewed violence in Nigeria and a warning that OPEC may not be able to meet its share of global oil demand by 2024.

Word that several Mexican oil export ports were closed due to rough weather added to the gains.

In Nigeria, bands of armed men invaded Port Harcourt, the center of the oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel. Four policemen, three civilians and six attackers were killed. The Niger Delta Vigilante Movement claimed responsibility for the attack.

Gold and oil break new records

Gold rose above $850 becoming the first commodity to reach a new record on the first session of new year, followed by oil which sprinted past the $100 level, also setting a record.

Gold pushed to $859.30 a troy ounce on Wednesday, helped by renewed US dollar weakness after the influential ISM manufacturing survey indicated that activity contracted in December, fuelling fears that weakness in the housing market is spreading into the wider economy.

[megeebee]

[CobaltSScrazy]

glad my parents bought my Michigan Class Ring for me before prices went hugely through the roof!

CobaltSScrazy

^^^^^ The above statement is very true!

[Chaz_23]

Looks like it'll be another excellent year for Toyota (and the crooks in the oil industry, speculators and related criminals).

[likearock00]

Ok, so oil went up because:

A. Sometime 16 years from now, we may not have alot of oil. Anyone else not think that's getting a little ahead of ourselves just a bit?

B. 9 people were killed in freakin Nigeria at their oil port. Who cares?? Why do I have to pay extra for gas just because idiots have guns?

It just goes to show how insignificant events cause our oil prices up. Hopefully nobody in Sudan blows their nose tommorrow or we're gonna be really screwed!

[genjy]

[GMusa]

I cant wait for cars like the Volt and GM Hydrogen vehicles so we can stop paying the terrorists for their oil!

[ponchoman49]

Boy you know they are really reaching for excuses on emptying our wallets of hard earned cash when they come up with stupid asinine crap like this:

Quote:Oil prices jumped sharply, setting a new trading record on supply concerns sparked by renewed violence in Nigeria and a warning that OPEC may not be able to meet its share of global oil demand by 2024.

Or this:

Quote:Word that several Mexican oil export ports were closed due to rough weather added to the gains.

We live in a pretty pathetic world if everytime someone farts or sneezes or gets blown up or someone at OPEC is predicting the future that oil prices clim higher and keep setting new records. Something is very very very obviously wrong with this picture.

[PhishPhood]

Originally Posted by ponchoman49

Boy you know they are really reaching for excuses on emptying our wallets of hard earned cash when they come up with stupid asinine crap like this:

Quote:Oil prices jumped sharply, setting a new trading record on supply concerns sparked by renewed violence in Nigeria and a warning that OPEC may not be able to meet its share of global oil demand by 2024.

Or this:

Quote:Word that several Mexican oil export ports were closed due to rough weather added to the gains.

We live in a pretty pathetic world if everytime someone farts or sneezes or gets blown up or someone at OPEC is predicting the future that oil prices clim higher and keep setting new records. Something is very very very obviously wrong with this picture.

The other way of looking at this is that right now, even though we can go to the pump and fill to our heart's content, we are very close to living on the edge.

What would you do if say in March, for a variety of reasons, you couldn't get any gas for a week or two? Now I don't think that this will happen but OPEC is living on the production edge so to speak. They also have the pricing power since they own the product and we want it and we need it more than any other nation on earth.

One thing you don't want to see is our 'Middle Eastern friends' laughing at us as we beg for their oil and/or shoot each other here at the pumps ( it happened in the 70s ).

[Z28x]

OPEC will tell you the oil will last forever because they don't want and energy independent America.

-Oil discoveries have peeked 40 years ago.
- According to M King Hubbert Production peaks follow Discovery peaks after approximately 40 years.
- US Oil production already peaked in 1970.
- Non OPEC Oil production already peaked in the early 90’s.
- World Oil production will peak when OPEC peaks
- OPEC peaks when Saudi Arabia peaks
- Saudi Arabia peaks when Ghawar peaks
- Ghawar is aging rapidly and may have already peaked.

[cmutt]

Petroleum importers and refiners are a parasite on the American economy. Where's the competition to keep prices low? It's a 'closed market' & the American people suffer for it! Need proof? Take a look at the bottom line of the oil giants. Who *couldn't* undercut that profit margin? How can they keep a straight face and say 'raiding the lobby of a major hotel' in Nigeria=higher oil prices?!? I'm sick of being bent over by the oil companies. Bring on the Volt - I'll stand in line to buy that thing - just for the principle of it!

[Hunid Racks]

Oil still cracks down into the same amount of fuel or other products.

Problem isn't what you get out of a barrel of oil.

It's what a dollar is worth.

And what a dollar is worth is based upon what a nation can do or better yet does.

Funny thing is, the nations that have milked the dollar and the politicians that have allowed and supported that leeching. well those nations may just be the first to see decline. But realize something, this nation's greatest measureable product (if it is a product) today is one thing. It is "debt". We are better than any other nation at "creating" debt at all levels. Then wonder what to do next.

[2002 Caddy]

Originally Posted by likearock00

Ok, so oil went up because:

A. Sometime 16 years from now, we may not have alot of oil. Anyone else not think that's getting a little ahead of ourselves just a bit?

B. 9 people were killed in freakin Nigeria at their oil port. Who cares?? Why do I have to pay extra for gas just because idiots have guns?

It just goes to show how insignificant events cause our oil prices up. Hopefully nobody in Sudan blows their nose tommorrow or we're gonna be really screwed!

While the above has some "short term" impact, you missed one of the biggest drivers on the price of oil.... Its not so much that oil and gold are actually worth more, its more that the US$ is becoming worth less and less.

Or another way, look at when Gold prices started to "take off"... August of 2007... and look when the US$ started to "tank"... interesting August of 2007.

This is a bigger problem then the cost of your student ring or some local nuts in the Sudan. When you "offshore" your ability to manufacture goods you loose control over a lot more then just the amount of lead in my kids Spiderman Pajamas...

edit... Hunid beat me by 5 minutes... But he is right too... Our total lack of a decent manufacturing base AND out of control debt brings us to this place...

[dav305z]

Gotta love oil speculators. In the long run, this may be good, because the high oil prices are making new options economically viable for the first time. Maybe by the time OPEC sees what is happening and decides to open up production it'll be too late and their hegemony will be broken.

Of course, by then the speculators will have moved to corn and switchgrass....

[TJ95GAGT]

What took them so long? I would have figured this to happen a week before Christmas, before everyone drives for the Holidays. Glad I got my 2 weeks worth of gas for $2.89 the other day.