Thursday, May 22, 2008

Okay, you have my permission to start panicking: Oil prices pass $132 after government reports supply drop

Oil breaks $132 as U.S. supply unexpectedly drops
OPEC daily oil prices surpass $121 per barrel
Oil prices pass $132 after government reports supply drop
NEW YORK (AP) — Oil prices bolted to a new record above $132 a barrel Wednesday after the government reported that supplies of crude oil and gasoline fell unexpectedly last week. And crude's rise in the futures market again pressured consumers by pulling prices at the pump higher — a gallon of regular gas rose overnight to a new record above $3.80 a gallon.

With gas and oil prices setting new records on a daily basis, many analysts are beginning to wonder whether anything can stop runaway prices. There are technical signals in the futures market, including price differences between near-term and longer-term contracts, that crude may have already risen too high. But with demand for oil growing in the developing world, and little end in sight to supply problems in oil rich nations such as Nigeria, few analysts are willing to call an end to crude's rally.

In London, July Brent crude rose $3.37 to $131.21 a barrel on the ICE Futures exchange.

NVDL: Is there anything left to say except CRASH, BOOM, BANG? Honestly, if the world's newspaper's tomorrow don't essentially have oil as a cover story, and headlines that amount to: WE'RE ALL FUCKED, then God help us. Because we need to stop right now and treat this like it is an emergency. That's exactly what it is. If you're an individual, get your money out of the stock markets, put it into resources like coal and oil (SASOL is a great buy). If you have debts, sort them out now. Start calling up your friends, because in a few weeks you might be out of a job, and the tank of petrol that's in your car now might be one of the last. Hoarding is probably going to start; not only with individuals, but whole countries. And the worst news is those poor mobs are going to grow in number here and everywhere, so work out ways to defend and fend for yourselves, and as I say, call up friends and family and let them know you might be in the neighborhood sometime soon.

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