Thanks, mainstream media, for the heads up.
Oil Rises to a Record $72.40 a Barrel After U.S. Supplies Drop
Oil supplies fell 806,000 barrels to 345.2 million in the week ended April 14, the report showed. Gasoline stockpiles plunged 5.4 million barrels as refiners finished maintenance of units before the peak-demand summer months. Contracts for oil closest to expiration are cheaper than those for delivery later this year because of concern over future supplies.
``Gasoline supply and prices are driving things,'' said Justin Fohsz, a broker at Starsupply Petroleum, a division of GFI Group Inc., in Englewood, New Jersey. ``The fall in crude stocks was a big surprise.''
Oil surged to a record yesterday after U.S. President George W. Bush said ``all options are on the table'' to keep Iran, the fourth-biggest oil producer, from developing nuclear weapons. The previous record of $70.85 a barrel was reached on Aug. 30, the day after Hurricane Katrina struck production platforms and refineries along the U.S. Gulf of Mexico coast. About 22 percent of Gulf oil production and 13 percent of gas production is still out of service, according to a report from the Minerals Management Service. Concern that the storm season, running from June to November, may bring further disruption has helped push oil higher.
Just remember one thing: After Katrina, everything changed. Last year, Europe sent the U.S. strategic oil. This year, they won't.
Gasoline is primed to run over four dollar a gallon by labor day in the States.