Source: AP

Crude Prices Reach Past $98 a Barrel on Middle East Bombings, Government Demand Expectations


NEW YORK (AP) -- Oil futures jumped to a new record above $98 a barrel late Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks.

Read more: http://biz.yahoo.com/ap/071106/oil_prices.html

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who predicted $100 by the end of the year..... probably by the end of the week !!

administration (Fall 1999)? Hint Freepers, it was no where near $100 a barrel.

man does that seem like a fantasy now, huh?

None of those have happened.

Forbid either does or we look at $150-175bbl...

We will reach 120 before the end of the year at this rate.

if moron* bombs iran expect 200+.

"If crude oil maintains this current price or continue to rise further over the next two (2) months, we could be looking at $4.00 per gallon gas prices by Christmas."

http://mhutch.blogspot.com/2007/10/90-per-barrel-oil-100-price-next.html

In CA at least that seems logical. I remember a PBS speculative 'Frontline' where they showed gas going up to $6 a gallon and the economic effects worldwide were devastating.

have a surplus of 'summer mix' to sell off before having to change over to the gov't mandated 'winter blend'.

After that...hold on to your wallet.

but at $100/bbl @ 42 gal/bbl we are looking at $2.38/gal. for the feedstock alone.

The following site (EIA) indicates feedstock was 53% of the cost of UNL in 2005, 47% in 2004.

So, assuming a liberal 55%, we are looking at

$4.33/gal.

Enjoy.

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html

And as a percentage of the price goes DOWN. To the $2.38 a gallon base price as it hits the US, you have to add distribution costs and taxes. The average State and federal tax on Gasoline is 42 cents a gallon. Thus Gasoline is at $2.80 a gallon BEFORE WE EVEN TALK ABOUT DISTRIBUTION COSTS and that is TODAY when Gasoline is selling is my home town of Johnstown Pa at 3.05 per gallon (i.e. Distribution costs is about 25 cents per gallon).

Gasoline Tax by State:
http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html

The $100 a barrel oil MUST be refined and then distributed. Distribution varies depending on where you live. I remember traveling from Louisiana to Pittsburgh a few years ago, and watch the price of Gasoline goes up as we moved. The reason is most Gasoline moves up the Ohio on Barges, and then distributed locally by truck. Thus Louisiana have the lowest distribution costs, and Pittsburgh the highest. This is true of the rest of the Nation, the further from the importation points (New Jersey, New Orleans and Southern California) the higher the distribution costs.

Refining is just a one time event, thus unlike distribution you do NOT see a cost difference depending on where you live. It looks like 38 Cents a Gallon (via a State of California site).

Thus we can assume the following costs will stay the same, Taxes at 42 cents per gallon, distribution costs of about 25 cents per gallon (Varies on location) and Refining costs at 38 cents a gallon. Thus $1.05 of every gallon involves costs incurred AFTER the oil hits the US. At 100 a Barrel, the price per gallon of oil is only $2.38 a gallon. Add $1.05 to $2.38 you get $3.43 per gallon.

Please note the above is a rough calculation and ONLY good when the $100 a barrel oil hits the US AND no cheaper oil is coming behind it (i.e. a drop in the price of oil, unlikely but possible).

After I did the above, I found California did it first, here is the site:
http://www.energy.ca.gov/gasoline/margins/index.html

I did notice in the California site that the "Distribution costs" varies on the month, from 10 cents a gallon in September to 3 cents in November. Given that California still produces some oil AND has terminals close by, 10 cents is NOT unreasonable.

We've got thousands of oil wells here in Texas. And I mean THOUSANDS. Ma pa's been pumpin oil out of the ground for a long time. But on our property, it's always been hard to git. Matter o fact, when oil was down to $50/barrel, we couldn't even turn a profit. But now that the price has near doubled, we got wells sprung up all over.

At night we sits around the fire and talk about buildin that mansion in Beverly Hills, complete with a Cement Pond!!!

Let's see... I'm getting 48 miles to the gallon right now. That's 2x the amount an average car gets... which means oil is equivalently around $1.50 for me and other people not driving gas guzzlers. So what's the problem again? People regretting their decisions to buy environmentally unsound gas guzzlers?

on a Honda Civic. I went from 10 miles per gallon to almost 40. Gas can be over $4.00 and it will still be cheaper for me to drive my Honda. I do miss the 4 wheel drive in the winter here, though!

more that $3.00 a gallon when it has to come out of our pockets. You advice is good for someone looking for a new car but we, as old-timers, are using the last car we will probably have. Makes little sense to me. I can hardly afford to heat my house, let alone make car payments.

nothing like a economical car for the masses huh? toyota is making a killing on their "green" vehicles.

I drive my own hybrid. it's called a bike, human-drive train power.

The other hybrid I ride in is the bus, natural gas hybrid.

when a bus if full, it takes the equivalent of 50 cars off the road.

The Prius isn't much more fuel-efficient than many combustion engine cars (of course I'm referring to the smaller, more fuel-efficient end of the spectrum).

I ride a bike around whenever I can, too.

...guess again.

The uncomfortable truth is that higher gas prices don't just cost you at the pump. They also affect the delivery costs of everything from groceries to DVDs, not to mention production costs of anything that uses petroleum (including factories which use oil as a heat source). So the prices on all of those will climb as well. The result of these across-the-board price rises may well be the Federal Reserve hiking the prime rate to keep inflation from turning into hyperinflation...which means that, if you have an adjustable-rate mortgage or credit card debt, get ready to start paying lots more in interest every month, on top of the extra you'll be paying for the products mentioned earlier...and that won't change, even if your hybrid could magically get 100 MPG.

:-(

:eyes:
it takes between 20 and 50 barrels of oil to make a car.

buy a small used car.

people who drive hybrids are trying, but don't be so smug, they still use gas.

Raises hand...

I think they are jacking the prices because they know the x-mass shopping is going to be weak, so they (corps) have to make some money some how off the backs of the prols.

I mean, Fuck You, Asshole.

since *co inaugurated their 3rd conservative dynastic WAVE, I mean, 3rd world phase!
Destroy a nation is a 2-term "job"; any terrorist should be envy of such "achievement"!

no shit, that's for sure. we went from bad to worse.

when crude was $22/bbl - "(The President) must jawbone OPEC members to lower prices."

A Snickers bar to the first member of the WH press corpse who asks Smirk or Dana about this.

From $22/bbl to $93 already and almost $100 ... The dollar has lost around 30 to 50 percent of its value according to what I heard on Air America with Thom Hartmann.