Crude Oil Approaches $80 A Barrel

[lib2DaBone]

Isn't $80 the limit where gasoline starts back towards $5 a gallon and the economy shuts down?

Is this the boys at Goldman Sachs doing their Enron thing again?

How can gas supplies decrease when trucking companies are shutting down, UPS is laying off and no one is taking a vacation?

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http://www.marketwatch.com/story/oil-futures-fall-on-expected-rise-in-supplies-2010-02-18?dist=countdown

Crude futures rise on economic data, U.S. supply update

Government reports showing rising U.S. jobless claims as well as a jump in producer prices dampened expectations for the economy and energy demand.

But "on the energy side, a big rise in crude inventories was offset by a big drop in distillate supplies," Fuentes said.

The Energy Information Administration said U.S. crude stockpiles rose by 3.1 million barrels in the week ended Feb. 12. Analysts polled by Platts had expected a buildup of 1.65 million barrels.

The EIA also said gasoline supplies rose by 1.62 million barrels, more than the 1.5 million barrels forecast in the Platts survey.

However, distillates fell by 2.94 million barrels on the week, far greater than the 1.6 million barrels that analysts had projected.

[Warpy]

1. It's being driven by information coming out of Niger

Rumor Central (Twitter) states the president is being held by the military and is expected to resign shortly. Speculators think this will likely drive oil prices higher.

[DJ13]

2. Thats not Niger, thats Nigeria

CNBC mentioned that incorrect rumor this morning.

[Warpy]

4. Nigeria's president has been absent for 2 months

due to health reasons. The second in command is finally taking over there.

There has been a coup attempt in Niger today. Whether or not it has been successful is unknown at this point.

There are two countries. Both are in line for a change in leadership and that is driving the price of oil.

On edit: Reuters updated the "rumor" 16 minutes ago: http://www.reuters.com/article/idUSLDE61H1I420100218?type=marketsNews

[vadawg]

3. $5 a gallon is a pain, thats close to $40 a day for the commute

just means i spend less in other areas of the economy...