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Oil jumps $4 to record over $120 on weak dollar


  3. merasyad
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Oil jumped $4 to record highs over $120 a barrel on Monday on the weaker U.S. dollar and supply concerns from OPEC members Nigeria and Iran.

U.S. crude gained $3.52 to trade at $119.84 at 1:30 p.m. EDT after surging to $120.36 earlier. London Brent crude rose $3.50 to $118.06 in light trade due to a bank holiday in Britain, after hitting $118.58 a barrel.

"People are piling back up on crude oil due to the weakness of the dollar and production issues in Nigeria," said Phil Flynn, analyst at Alaron Trading in Chicago. "But it also looks like momentum play after Friday's positive reaction to the unemployment report."

U.S. government data released Friday that showed U.S. payrolls fell by 20,000 jobs in March, a quarter of the losses expected, helping to counter concerns that the weaker U.S. economy could drag down oil demand.

The dollar fell broadly on Monday, however, as forex investors decided the world's biggest economy was still struggling. A Monday report from the Institute for Supply Management that showed the U.S. service sector grew unexpectedly in April.

Further support for oil came from Iran's announcement on Monday it would not consider any incentives offered by world powers that would constrain its right to nuclear technology.
merasyad

15 responses // Oil jumps $4 to record over $120 on weak dollar

  • Peak oil production by 2015 says Shell.

    We need to cut back on our wasteful habits if we want our country to get through this.
    Saladin
  • What great news! Maybe people will finally start investing in cars that get more than 12 mpg and hold auto makers more accountable for their creations that are destroying our environment.

    Maybe some regulations put forth by the government that would help companies go Green would help too.

    Can't wait for Bush to get the hell out of the white house. Maybe then we'll see some actual changes for the good of everyone.
    urkovs
  • my sentiments exactly, urkovs
    stephenthomson
  • i think gas is relatively cheap. compared to my triple size redbull.
    kingtsohg
  • Imagine that for One day, only one day, everyone in the world would not buy gas. Not to stop at a gas station. Have enough gas for a week and not buy gas for one day.

    Everyone in the world not to BUY gas for one day. Only one day of not buying gas.

    This action would make a statement to the oil company.
    dontipo
  • actually, dontipo, there is overwhelming evidence that this would do absolutely nothing. There have been dozens of facebook events created to "boycott the gas industry" for a single day.

    I recommend you read the following:

    http://www.msnbc.msn.com/id/18492185/
    or
    http://www.snopes.com/politics/gasoline/nogas.asp

    Both essentially describe why a boycott wouldn't work. If people were to boycott gas on, say, May 15th, they would still need to get where they were going anyways. This means they would either have to fill up a day before or a day after, essentially leaving the gas companies spot even after all is said and done. Plus, even if it did work, what's a billion dollars to one of the highest-profiting industries in the world? Chump change.

    The ONLY way to get around this problem is to actively change our lifestyles so we are not so reliant on gas.
    Suggestions:
    Buy a hybrid car!
    Take showers that are colder or shorter to save on the gas bill.
    Walk or ride a bike! These have almost no impact on the environment AND you get exercise AND they are essentially free!
    urkovs
  • what i would like to know is why in the world hasnt anyone focused thier energy (pardon the pun) on a different kind of vehicle? why are we even fueling our cars with gas when the technology exists to have a vehicle run on something else im not a scientist or an engineer or i would but i know that there are those in this field that can and have the resources to our main focus should not be on getting more oil or lowering the price but on finding another more efficient way of doing things if they can outlaw annalog tv to create more profit for the digital media industry ( and establish a very effective means of controlling information) than they can certainly do it to cars run on oil its time to move out of the dark ages of energy and into the future
    gypsumstar
  • a second thought if no one minds i have two kids age 3 and 1 there is no way for me to ride a bike to take them to daycare go to the grocery store get to doctor appointments or really go anywhere or do anything that i need to on a bicycle i would have to get a horse and buggy to be able to effectivly live and work with my two kids so if anyone has an energy saving solution that i can actually use i would welcome hearing it
    gypsumstar
  • gypsumstar, try checking out hybrid vehicles. They aren't the solution, but they help.

    Nearly every car maker today has at least one line of hybrid/electric vehicle.
    urkovs
  • http://hosted.ap.org/dynamic/stories/O/OIL_PRICES?SITE=...
    Check out this article... we're going to see $150 + oil whether we want to or not and whether it's in 6 months or 12... it's coming. The tipping is here and its for the world to wake up... especially Americans because life as we know it is about to be over (wave good tidings to surburbia.)
    common_sense_allowed
  • the act of not buying gas for one day would not send a message to the oil companies because they would know we would buy it tomorrow...shutting down the oil companies or controlling the process in the oil companies would send a message...we cant have high gas prices without the oil...but we can still have transportation without gas...change the leadership, empower the people...an energy revolution (Friedman explains it well in his lecture on the world becoming flat...check youtube if you're interested)
    JMTJ
  • This problem is multifaceted: Yes, oil hit a record $122/barrel today, but the dollar has declined significantly in last 18 months. I think it's important that people realize that the Federal Reserve shares in the blame (and this isn't a conspiracy theory)...when interest rates are this low, money becomes cheap and we pump more and more of it into our economy, devaluing our currency...some analysts would argue that oil would trade around $85 right now had the Fed not been quite so aggressive.
    Riddy
  • I would like to see the oil price develop in euros, i think that would be a lot less scary to follow.
    yonie
  • gypsumstar

    There are car companies working on this issue.

    As for the dollar and oil.

    The dollar may become strong again soon enough.

    Low rates can also be a very good thing.

    The deflation aspect of real estate give both low rates and the dollar a strong foundation to build on.

    DEFLATION in REAL ESTATE has been MASSIVE.in many areas. My guess is we are looking at 2 to 3 more months of bank corrections and bail-outs, while moving up or down depending on the NEWS.

    All the while the DOLLAR keeps getting stronger as the FED proves itself a very POWERFUL FORCE.
    1Eco_Media
  • Riddy, what you said about the Fed and how we could possibly be paying only $85 per barrel makes me sick. That's sad.
    GraphicTheEnemy

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