oil price going through the roof

[Hellfighter]

AP Business News

August 10. 2005 8:47PM

Soaring Oil Prices Mute Wall Street Rally

By EILEEN ALT POWELL
AP Business Writer

Oil prices that soared to $65 a barrel choked off an early rally on Wall Street Wednesday, pummeling the market's optimism about the economy in the process. The tech-focused NASDAQ composite index also was hurt by a disappointing forecast from networking gear maker Cisco Systems Inc.

Analysts said investors had begun the day confident that the U.S. economy will stay strong, absorbing both higher short-term interest rates and rising gasoline prices. But the erosion of stocks' early advance - the Dow Jones industrials had gained more than 100 points, extending a rally from Tuesday - was proof that many investors remained uneasy and inclined to sell when oil climbs higher.

Crude climbed hit an intraday record of $65 a barrel on the New York Mercantile Exchange before easing to a record close of $64.90, up $1.83 for the day.

The price of oil "clearly is the headline, and that's probably causing the market malaise," said Jack A. Ablin, chief investment officer at Harris Private Bank in Chicago.

The Dow fell 21.26, or 0.2 percent, to 10,594.41.

Broader stock indicators also fell, having given up earlier gains. The Standard & Poor's 500 index fell 2.25, or 0.18 percent, to 1,229.13 and the NASDAQ composite index dropped 16.38, or 0.75 percent, to 2,157.81.

The market initially was buoyed by confidence that the Federal Reserves decision Tuesday to raise short-term interest rates one-quarter percentage point to 3.5 percent wouldn't harm the economy. The Fed also restated that its interest rate policy is "accommodative" and future rate hikes can continue at "a pace that is likely to be measured," suggesting that the economy should continue expanding.

But investors turned around when oil prices resumed their climb despite new estimates from the U.S. Department of Energy of slower growth in world oil demand, which would put less upward pressure on prices.

Investors, already uncomfortable with a series of refinery outages, apparently focused on the department's supply report, which showed a 2.1 million barrel decrease in the nation's supply of gasoline. They repeated a pattern from recent months, setting aside evidence of a strong economy to focus instead on oil's rising price.

Mark Vitner, senior economist at Wachovia Securities in Charlotte, N.C., noted that "it's somewhat surprising how resilient the economy has been, despite higher energy prices."

The concern on Wall Street, however, is that "eventually, higher gas prices will eat away at consumers' purchasing power ... and slow economic growth," Vitner said.

Shares in oil companies soared along with oil prices. Chevron Corp. rose $1.26, or 2 percent, to $62.48, while Exxon Mobil Corp. advanced 73 cents, or 1.2 percent, to $59.90. BP PLC rose 94 cents, or 1.4 percent, to $70.58.


AP Photo/Jae C. Hong

Charles Martinez fills his car at a Chevron gas station in Pasadena, Calif., Wednesday, Aug. 10, 2005. Oil prices zoomed higher Wednesday, touching a new high of $65 a barrel, with buyers focused on refinery snags, shrinking U.S. inventories of gasoline and motorists' growing thirst for fuel despite record-high costs. The latest rally--crude futures have risen 14 percent in three weeks--highlights just how nervous the market has become to output threats. It doesn't seem to matter, analysts said, that the country has enough fuel in inventory to offset routine supply disruptions.

[b]Source: http://www.hendersonvillenews.com/ap.../APF/508100680

gee USD-65.00 a barrel (55gal) woo

[Trojan]

better get some wings lmao!

[BADDOG]

Originally posted by Trojan
better get some wings lmao!

LMAO we are all going to need some!!!!

Warm Regards from a soon to be airborne baddog lol lol!!!!!

[Hellfighter]

update:

UNDATED Oil prices are sitting at another record high as more and more drivers worry about how they're going to pay for a fill-up.

The price for September delivery on the New York Mercantile Exchange closed yesterday at just under 67 dollars a barrel for an all-time high.

The price has shot up ten dollars a barrel in less than a month.

A poll by The Associated Press and A-O-L indicates nearly two-thirds of drivers expect fuel costs will cause them personal financial hardship in coming months. One New Yorker complains his last fill-up cost him more than 50 dollars and says he can longer afford to be a two-car family.

Source: http://www.woi-tv.com/Global/story.a...7&nav=1LFXOzWv

still going up none stop, some are saying it may not stop till it hit USD-10.00gal scary to think. flate line

[BADDOG]

I suppose that this means we will all pay through the nose for our petrol/gas!!!!


Regards

[Jeff]

Gas is 107.9 cents per litre where im at. Highest its ever been.

(or, 408.4 cents per gallon)

[Hellfighter]

Low 87% is USD-2.55c in my area for a gallion of gas at a gasstation.

[Matt]

Originally posted by Chief ADFP
still going up none stop, some are saying it may not stop till it hit USD-10.00gal scary to think. flate line

i doubt it will hit 10 dollars, but this is getting to be a load of BS. im about to sell my car and buy a hybrid

[Hellfighter]

think a motor cycle be better.

them hybrid can cost, better change it into a hybrid be cheaper if it not too old that is.

don't know what the price on LP/gas is but in old days it was a lot cheaper and it was cleaner then normal gas. plus more miles with LP-gas

[SilentTrigger]

LP? Leaded Partol?