by Jerome a Paris
Sat Aug 13th, 2005 at 03:50:22 AM EST
a timely topic, promoted from the diaries by site gnomes and updated by Jerome with the new highs
US energy costs surge as oil breaks $67 (FT, Saturday)
Oil futures broke through $67 a barrel to reach the fifth record of the week, while natural gas rose to the highest price recorded for a summer contract.
Oil Prices Briefly Touch $66 Per Barrel on Supply Concerns, Strong Demand
High oil prices boosted the US import bill in June, helping to widen the US trade deficit by 6 per cent to $58.8bn. Imports of crude oil climbed to $14.6bn compared with $13.7bn in May.
Crude Oil Rises as IEA Says High Prices Aren't Slowing Demand (Bloomberg)
Oil price hits $66 for fourth record of the week (FT, Friday)
Oil prices on Thursday broke their fourth consecutive nominal record for the week, after a warning from the industrial countries' energy watchdog that rising prices had not yet dented demand.
The International Energy Agency also pointed to a sharp slowdown in production outside the Organisation of the Petroleum Exporting Countries. The comments from the IEA pushed US oil futures to $66 a barrel, while heating oil and petrol also hit records. "My long-term forecast is for $70 a barrel," said Phil Flynn of Alaron Trading in Chicago. Refinery outages and Iran's nuclear stand-off also supported prices.
The IEA cut its forecast for non-Opec output growth to 670,000 barrels a day half last year's increase and the weakest since 1999. In spite of two years of high prices, it raised its demand forecast slightly. That means that Opec, which is already producing near its limit, will have to fill a widening gap.
"Higher oil prices have brought about a limited demand-side response," the IEA said.
World oil consumption will rise by 1.6m b/d to 83.7m b/d this year and that rise will accelerate to 1.8m b/d next year.
Okay. I am taking bets. Please post below the price for oil (you can use WTI or Brent as a reference - just say which) on the last day of 2005.
The bet closest to the actual price will get a prize, a bottle, at your option, of fine French Champagne or fine Whiskey. If the winning bet is below 100$, the winner will get BOTH bottles.
Arguments welcome if you care to provide them, but not required!