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Apr-16-2008

Crude Oil Trades Above $113 as Investors Turn to Commodities

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NEW YORK - Crude prices rose to a new record high on Tuesday as the dollar fell and supply disruptions from major oil exporters to the U.S. were announced today. (More...)
New York oil futures gained 15 percent the past two months, reaching a record $112.21 on April 9, as the sliding dollar and falling equities encouraged investors to buy commodities. (More...)
As crude oil and gasoline rose to all-time highs Monday, energy analysts offered a bit of hope that prices will retreat later in the year, although perhaps not until the peak summer driving season has ended. (More...)
Crude oil traded at $112.07 a barrel, up 31 cents, at 3:13 p.m. in Singapore. (More...)
Crude oil prices may be flirting with record highs, but one would never know it from the performance of some energy stocks. (More...)
After weeks of high volatility and uncertainty, oil futures appear to be again in an upward trend, according to analysts at Barclays Capital Research. (More...)
In other commodities news, gold finished higher overnight, but one analyst suggested limited progress could be a sign of more consolidation to come considering precious metals weren't able to benefit more from record highs in crude oil and a surge in wholesale inflation. (More...)
London's Brent North Sea crude for May delivery was 42 cents higher at $110.26 a barrel, easing slightly after striking an intra-day high of $110.45. (More...)
Heating oil for May delivery inched up by 0.35¢ to $3.20/gal on NYMEX. The May RBOB contract gained 1.52¢ to $2.81/gal. (More...)
Energy prices on a monthly basis leaped 2.9 percent in March, led by a 13.1 percent rise in heating oil and a 15.3 percent gain in diesel fuel. (More...)
Inflation-fearing investors may have found impetus to add oil positions after the Labour Department reported the producer-price index rose 1.1 per cent in March, after a 0.3 per cent increase in February. (More...)
The contract yesterday gained $1.09, or 1 percent, to close at a record $109.84. (More...)
Natural gas futures gained 6.7 cents to US$10.12 per 1,000 cubic feet. (More...)
Against the euro, the dollar traded at $1.5831 at 5:59 a.m. in Tokyo, after declining 0.2 percent yesterday. (More...)
U.S. crude-oil supplies probably gained last week amid speculation imports rose, a Bloomberg News survey indicated. (More...)
Producers raise prices to compensate for the lower value of the dollar. (More...)

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NEW YORK - Crude prices rose to a new record high on Tuesday as the dollar fell and supply disruptions from major oil exporters to the U.S. were announced today. Crude oil futures rose $1.64, or 1.47 percent to $113.40 a barrel on the New York Mercantile Exchange by 12:53 p.m. Prices hit a record high of $113.66 in earlier trading, their highest since futures trading began in 1983. [1] According to Shell Oil Co. president, John Hofmeister, the oil industry should not be held responsible for steeping prices of gasoline. He further added that America must produce more domestic oil despite the fact that biofuels and other alternative sources of energy are developing at a rapid rate. In an alternative-fuels conference in Sacramento Mr. John Hofmeister said that: '''We see no alternative''' in the short term, in his keynote speech to the Low Carbon Fuels conference. He supported the benefits of a new type of ethanol and other futuristic fuels and also delivered a message in favor of conventional fuel, suggesting: Fuel forms such as crude oil will continue to lead the market in the future. He further added if oil companies like Shell are not permitted to produce oil from domestic sources, the industry will be left with only one option. This option, importing oil into the U.S., will eventually lead to high prices. Critics have been blaming the oil companies for record profits, Hofmeister said oil companies cannot be held responsible for prices that reach all time high national average of $3.37 a gallon for self-serve regular this week. He also said that the high price of crude, which closed at $111.76, Monday on New York Mercantile Exchange, is the major cause of concern. Crude prices are responsible for some 70 percent of gasoline price, according to him.[2]

Light, sweet crude for May delivery rose as high as $113.99 a barrel for the first time on the New York Mercantile Exchange before settling at $113.79, up $2.03 from Monday's record settlement price of $111.76 a barrel. Traders apparently focused on a report from the International Energy Agency that said Russian oil production dropped this year for the first time in a decade.[3] Light, sweet crude for May delivery jumped as high as $114.08 a barrel shortly after regular trading ended on the New York Mercantile Exchange. That is nearly $2 above an intraday high set last week. Concerns about insufficient global supply, stoked by a high-profile report by the International Energy Agency that said Russian oil production dropped this year for the first time in a decade, was largely responsible for the surge.[4] Considering Wachovia is the nation's fourth largest bank, it confirmed the credit crisis that looms over the U.S. economy. A weakening economy spells a drop in the value of the greenback which in turn pushes dollar denominated commodities such as crude oil and gold higher. In New York, crude oil futures contracts for May delivery were trading up $1.84 per barrel at $113.60, having hit a high of $113.70 on the news of a shortage in global oil supply which came from a report issued by the Energy Department that said Russia' oil production has dropped this year for the first time in a decade.[5]

VIENNA, Austria (AP) — Oil prices rose to new heights Tuesday, surging to almost $114 a barrel after the U.S. dollar fell and worries mounted about the global oil supply. A report from the International Energy Agency said Russian oil production dropped this year for the first time in a decade.[6]

Oil climbed to $114.08 a barrel yesterday, the highest since futures began trading in 1983. Rising global demand for raw materials and a weakening U.S. dollar have led to record prices this year for commodities.[7]

U.S. pump prices are following futures higher. Regular gasoline, averaged nationwide, rose 1.3 cents to a record $3.3386 a gallon, AAA, the nations largest motorist organization, said today on its Web site. "This is the continuation of a broad-based commodity rally, led in part by crude oil," Wittenauer said. The Organization of Petroleum Exporting Countries left its forecast for 2008 oil demand at 86.97 million barrels a day, a 1.2 million barrel-a-day gain over 2007, according to the groups monthly demand report.[8] In London, May Brent crude rose $1.70 to $111.54 on the ICE Futures exchange. OPEC's forecast for a rise in global oil demand is unchanged this month from the March outlook: up 1.2 million barrels per day this year to an average 87 million barrels per day. That compares with last week's outlook from the International Energy Agency for a sharp drop in global demand.[3]

CRUDE oil, heating oil and petrol futures surged to new records overnight in a spate of buying set off by supply headaches. Light, sweet crude for May delivery settled up $US2.03, or 1.8 per cent, at $US113.79 a barrel on the New York Mercantile Exchange, marking its second all-time high in two days.[9] By the afternoon in Europe, light, sweet crude for May delivery on the New York Mercantile Exchange was trading as high as $113.66 a barrel. That's $1.45 above the trading record set last week and $1.90 above yesterday's record close of $111.76 a barrel. The recent rise in oil prices have been mostly blamed on the weakened dollar, which can prompt investors to seek a safer haven in hard commodities such as oil and gold.[10] The contract later rose to $112.48 a barrel in electronic trading on the New York Mercantile Exchange midmorning Tuesday in Singapore, surpassing the previous record set last week at $112.21. Many investors regard commodities such as oil as a hedge against a weak dollar and inflation.[11]

Crude oil rose $1.62 per barrel to a settlement price of $111.76 on the New York Mercantile Exchange, the highest close since trading began in 1983.[12] June gold rose $US3.30 to finish at $US932 a troy ounce on the Comex division of the New York Mercantile Exchange. While finishing higher, Comex June gold backed down from its $US939.80 intraday high even though May crude oil remained within striking distance of the Nymex record intraday high of $US113.93 a barrel hit earlier in the session. "It (gold) can't get out of its own way," said Tom O'Brien, precious-metals analyst and editor of The Gold Report newsletter.[9] Crude oil for May delivery gained $1.62, or 1.5%, to settle at $111.76 a barrel on the New York Mercantile Exchange. It earlier rose to an intraday high of $111.99 a barrel, close to its record high of $112.21 hit last Wednesday.[13] Crude oil for May delivery rose as much as $1.20 cents, or 1.1 percent, to $111.34 a barrel on the New York Mercantile Exchange, and traded at $111.09 at 1:41 p.m. London time.[14] Crude oil for May delivery was at $113.55 a barrel, down 24 cents, at 11:04 a.m. Singapore time in after-hours electronic trading on the New York Mercantile Exchange.[7] A light sweet barrel of crude oil for May delivery traded at $111.16 a barrel, up by $1.02 in electronic trading on the New York Mercantile Exchange, after it was recorded at $110.14 a barrel on the New York Mercantile Exchange on Friday.[15]

Oil climbed to $112.48 a barrel on the New York Mercantile Exchange, the highest since futures began trading in 1983. Mexico, the third-largest shipper of crude to the U.S., shut its fourth export terminal yesterday.[16]

The Canadian dollar continued to benefit from record high crude oil prices Tuesday, as light sweet crude traded close to US$114 per barrel on the New York Mercantile Exchange.[17] NEW YORK (CNNMoney.com) -- Crude oil prices surged Tuesday settling at a new record high above $113 a barrel as the U.S. dollar weakened further against the euro.[18] LONDON, April 15 (AFP) ''' The price of New York crude oil on Tuesday surged to a record high of 112.78 dollars a barrel, boosted by a weak U.S. currency and tightening energy supplies, traders said.[19] The price of U.S. crude oil has surged to a new record high of $113.93 a barrel, boosted by a weak U.S. currency and tightening energy supplies. The latest rise also came after news that the crude-producing cartel OPEC had left its 2008 estimate of growth in world oil demand unchanged. After hitting the new record, U.S. crude this evening stood at $113.81, up $2.05 from Monday's close.[20]

Crude oil prices rose as high as $113.93 per barrel in New York on Tuesday, a new record, supported by supply disruptions and port closures in Mexico.[21] April 15 (Bloomberg) -- Crude oil rose to a record above $113 a barrel in New York on supply disruptions in Nigeria and Mexico and rising fuel demand in China.[22] Crude oil prices rose to a record high of $113 per barrel on Tuesday on supply disruptions in Nigeria and Mexico and rising fuel demand in China. One of Nigeria's major oil producers, Agip, announced that it had halted some of its output in Nigeria.[23]

SINGAPORE -- Oil prices hovered near record levels in Asian trading Tuesday as supply concerns remained a key factor, dealers said. In early morning trade, New York's main contract, light sweet crude for May delivery, briefly traded at $112.17 a barrel, just four cents shy off its peak of $112.21 set last Wednesday.[24] Light, sweet crude for May delivery settled up $US1.62, or 1.5 per cent, at $US111.76 a barrel on the New York Mercantile Exchange. The Nymex contract hit $111.99 during the trading session, below its all-time intraday high, made April 9, of $US112.21.[25] May contracts for West Texas Intermediate had added $1.69 to $113.45 per barrel by early afternoon on the New York Mercantile Exchange while Brent crude was up $1.73 to $111.57 per barrel on the ICE Futures Europe exchange in London.[26]

The number of energy futures contracts traded at the New York Mercantile Exchange in the first three months of 2008 soared 18 percent versus the same period in 2007. Investors have poured a net $928 million into the four of the largest commodity exchange-traded funds this year, says Lipper.[27] Crude oil for May delivery rallied 2.03 dollars, or 1.8 percent, to close at 113.79 dollars on the New York Mercantile Exchange. An International Energy Agency report says that Russian oil production dropped this year for the first time in a decade.[28] Crude oil futures prices ended higher, and at a new record, on the New York Mercantile Exchange.[29] Light, sweet crude for May delivery rose as high as $113.93 a barrel on the New York Mercantile Exchange before backing off to $113.57, up $1.81 from Mondays record settlement price of $111.76 a barrel.[8] On one hand, light, sweet crude for May delivery on the New York Mercantile Exchange rose as high as $113.66 a barrel by afternoon in Europe before backing off. That was $1.45 above the previous record set last week.[30] Light, sweet crude for May delivery rose to US$112.48 a barrel in electronic trading on the New York Mercantile Exchange, surpassing the previous trading record of US$112.21, set last week.[31] Light, sweet crude for May delivery on the New York Mercantile Exchange rose $1.02 to $111.16 a barrel in electronic trading by afternoon in Europe.[32] Light, sweet crude for May delivery rose 1 cent to US$113.80 a barrel in Asian electronic trading on the New York Mercantile Exchange by midday in Singapore.[33]

Oil traded on the New York Mercantile Exchange rose above US$113 per barrel for the first time yesterday, surpassing the previous intra-day record of US$112.21 a week ago.[34]

Crude oil rose to a new record high in New York on Tuesday, touching $113.93 per barrel before pulling back slightly in afternoon trade.[26] Crude had jumped to a record price of $112.21 a barrel on April 9 in New York, following a report from the U.S. authorities on the declining amount of oil stockpiles.[15] New York, NY (AHN) - Crude oil prices jumped back above $111 a barrel in New York after the news spread that the supplies could be disrupted from the U.S. and Nigeria.[15]

"This really looks like the plot to one of those action movies, in which the protagonist, no matter what you throw at him, no matter how badly injured he is, defies all laws of physics and won't die." As he spoke, crude oil was rising 1.5 per cent to a record $111.76 U.S. a barrel at the close of floor trading on the NYMEX. Prices are up 76 per cent from a year ago.[35] The pipeline has since reopened and is operating at reduced capacity. In Nigeria, Italian energy giant ENI said sabotage has cut crude production from one of its facilities by about 5,000 barrels a day. Analysts believe the weak dollar is the main reason oil prices have risen to record levels this year, and have held above $100 for more than a month.[11] "The G-7's warning against excessive currency fluctuations was interpreted by the market as saying the dollar's fallen way too much and too fast," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "This comment may underpin the U.S. dollar in the near term and thereby reduce the interest of financial investors to pile money into oil and other commodities," he said. Crude prices have also come under pressure after the International Energy Agency last Friday lowered its global oil demand forecast for the year by 310,000 barrels a day to 87.2 million barrels a day, citing lower economic output expectations in the U.S. and elsewhere.[32] The euro traded at $1.5836 versus the dollar as of 1:13 p.m. in London from $1.5832 late in New York yesterday. The Organization of Petroleum Exporting Countries today said a decline in global demand for oil during the second quarter could be more "pronounced,'' should the U.S. economy continue its slide into recession. In its monthly report, OPEC left its forecast for 2008 oil demand steady at 86.97 million barrels a day, a 1.2 million barrel- a-day gain over 2007.[22]

NEW YORK, Apr. 14, 2008 (Thomson Financial delivered by Newstex) -- The oil service sector posted strong gains Monday after May crude neared a record high above $111-a-barrel Monday amid weakness in the U.S. dollar and supply jitters.[36] Independent energy trader Jim Dietz told BloggingStocks Tuesday the supply disruptions in Mexico and Nigeria were negative datapoints the oil market did not need. "We've got investment funds piling into oil now, a weak dollar, and inflation hedging, so the last thing this market needed was a supply disruption," Dietz said. "The market kind of discounted the Nigerian news because they've been an off-and-on supply concern for about three years now, but the Mexico news was a bit of a surprise." Dietz added that he is long with oil and unleaded gasoline, with monthly contracts. Petroleos Mexicanos, the third-largest supplier of crude to the U.S., shut its crude oil export terminal on the Pacific coast Tuesday, the fourth terminal to close since April 13, 2008, Bloomberg News reported. Dietz said he expects oil "to at least top $115" and if the Mexico disruption is longer than one week, "most likely oil with rise to about $120."[37] April 14 (Bloomberg) -- Crude oil rose in New York amid supply disruptions in the U.S. and in Nigeria at the weekend, and because the weaker dollar lured investors seeking a buffer against inflation.[14] April 16 (Bloomberg) -- Crude oil was little changed above $113 a barrel in New York after touching a record yesterday as investors purchased commodities because their returns have outpaced stocks, bonds and other financial instruments.[7] April 15 (Bloomberg) -- Crude oil traded near $112 a barrel after closing at a record yesterday as investors purchased futures contracts to hedge against the falling dollar.[38] Sydney, Australia (AHN)- World crude touched a new record high, reaching above $112 a barrel Tuesday as investors purchased futures contracts to hedge against the falling dollar, reports said.[39]

The myriad reasons for more buying in oil has boosted price of the benchmark crude contract again lately traded at $113.50 a barrel on Nymex. Should it hold above $111.76, it would establish a new closing record for the contract the ninth such occurrence since the beginning of March. Analysts increasingly believe that instead of nervously waiting on lower oil prices, people might have to get used to these lofty values for the price of oil and other energy products.[40] The contract closed at a record settlement price of $111.76 a barrel on Monday. The recent run above $100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.[6] Crude oil's recent run above $100 a barrel has been largely attributed to a steadily depreciating U.S. currency, because a weakening dollar attracts investors to commodities as a hedge against inflation. The Group of Seven industrialized nations said in a statement Friday that "there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability."[32] Crudes rally this week started with a decline in the greenback relative to the euro on Monday, analysts said. Crude oils recent run above US$100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.[31] Analysts said growing investor demand for commodities which have performed better than other financial instruments also helped prop up prices. "This is really driven by investors purchasing oil because returns have simply outpaced those of stocks and bonds," said Victor Shum, an energy analyst with Purvin Gertz in Singapore. Shum said he didnt think supply and demand fundamentals were that strong, but added that "oils price rise seems unstoppable." Oils recent run above US$100 a barrel has been largely attributed to a steadily depreciating U.S. currency because a weakening dollar prompts investors to seek a safe haven in hard commodities such as oil and gold.[33] Monday's news from the U.S. banking company Wachovia Corp. supported oil prices by making the U.S. dollar less attractive, said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. Wachovia, the fourth largest bank in the U.S., reported a hefty first-quarter loss and cut its dividend, and said it was forced to seek a $7 billion cash injection to make up for a poorly timed expansion of its mortgage business. "This news highlights the strains in the banking sector and credit markets and that has led to more dollar selling, and so that tends to drive investors into oil and other commodities," Shum said. He said the news from Wachovia as well as disappointing first-quarter results from General Electric Co. on Friday overshadowed concerns raised by the Group of Seven industrialized nations about the dollar's fall.[6] There are exceptions to the rule: Canadian Natural Resources Ltd., whose shares hit a high of $82.32 yesterday, for instance. Sam La Bell, an analyst with Veritas Investment Research Corp., studied seven major Canadian energy issues, and concluded in a report issued last week that their valuations are geared to account for a possible decline in oil prices to $50 (U.S.) by 2012. The commodity prices have gone up but "really, valuations are still stuck at last year's prices," he said. He suggests a few explanations for that. One is a feeling that the high commodity prices are unsustainable. Another is that investors now see the group as higher risk, requiring a higher rate of return and leading to a lower multiple.[41]

The U.S. Energy Information Administration was expected to report later in the day that crude inventories grew 1.5 million barrels last week, according to a survey of analysts by Platts, the energy research arm of McGraw-Hill Cos. Gasoline inventories were expected to decline 2 million barrels, to post their fifth consecutive weekly drop amid increasing demand for the fuel, the survey showed. "Implied gasoline demand typically starts to increase at this time of year, but high prices at the pump and a slowing U.S. economy appear to have dented the pace of demand growth," the Platts report said.[33] According to Harold Lima, president of Brazil's National Petroleum Agency, the off-shore find could contain the equivalent of 33 billion barrels of crude, the world's third-largest oil reserve. A find that large would normally put pressure on crude prices, said Omar Nokta, managing director of energy and commodities investment bank Dahlman Rose & Co. But the time and technology it takes to capitalize on new deep-water discoveries may be mitigating its effect on the markets. "It's not going to happen overnight like it did 10 years ago," said Nokta. In a best-case scenario it would take a "good 5 years to fully develop a find," he added. The new record for crude comes as both refined gasoline and diesel fuel reach record prices at the pump.[18]

Energy traders rewrote the record books again Tuesday, pushing oil futures past $114 a barrel as gasoline and diesel prices struck new highs of their own at the pump.[4] On April 11, the contract rose 55 cents, or 0.5 percent, to $108.75, a record closing price. Saudi Arabia's King Abdullah said over the weekend his nation's new oil discoveries must be saved for the benefit of future generations, Iran's official Islamic Republic News Agency reported, without giving details of new discoveries.[14]

Nymex May gasoline was up 4 cents to $2.86 per gallon at last report, while June heating oil had added 1 cent to $3.16 per gallon and May natural gas had gained 17 cents to $10.23 per million British thermal units. At-the-pump prices for both gasoline and diesel hit new record highs in the United States.[21] The other major energy commodities also vaulted ahead on the news in early trading Tuesday. Heating oil jumped 3 cents to $3.25 per gallon, unleaded gasoline added 2 cents to $2.84 per gallon, and natural gas added about 14 cents to $10.20 per million BTUs.[37]

In other Nymex trading, heating oil futures surged by over 5 cents to sell for $3.255 gallon while gasoline prices rose by nearly 4 cents to $2.8608 a gallon.[6] In other Nymex trading, heating oil futures added 1.31 cents to US$3.216 a gallon (3.8 liters) while gasoline prices rose 0.63 cent to US$2.8281 a gallon.[31]

In other Nymex trading Monday, May gasoline futures rose 1.45 cents to settle at $2.8218 a gallon, and May heating oil futures rose 0.54 cent to settle at $3.2029 a gallon.[11] In other Nymex trading, heating oil futures surged by 7.1 cents to settle at $3.2739 gallon, while natural gas futures spiked by 15.9 cents to $10.212 per 1,000 cubic feet.[3]

May gasoline futures rose 1.45 cents to settle at $2.8218 a gallon. Retail gasoline prices, which had fluctuated over the weekend in the U.S., appeared poised to resume their march to a record high milestone of $3.50 per gallon.[42] U.S. pump prices have followed futures higher. Regular gasoline, averaged nationwide, declined 0.1 cent from a record to $3.373 a gallon, AAA, the nation's largest motorist organization, said on its Web site.[43]

New York oil futures gained 15 percent the past two months, reaching a record $112.21 on April 9, as the sliding dollar and falling equities encouraged investors to buy commodities. "There's nothing in the fundamentals to justify these prices,'' said Gerrit Zambo, an oil trader at BayernLB in Munich. [14] Crude oil futures rose more than $2 a barrel to $113.79 in New York.[44] "The dollar's weakness and the Capline problem certainly pushed crude up overnight," said Tom Bentz, a broker and analyst at BNP Paribas Commodity Futures in New York. Traders said they'll be focusing on whether crude will be able to return to its all-time intraday high of $112.21 a barrel, reached last Wednesday.[45]

Later Tuesday, New York'''s main oil contract, light sweet crude for delivery in May, stood at 112.65 dollars a barrel, up 89 cents on Monday'''s close. London'''s Brent North Sea crude for May struck its own record high of 110.91 dollars a barrel on Tuesday. It later stood at 110.85 dollars, up 1.01 dollars.[19] In afternoon trade New York's main contract, light sweet crude for May delivery, was 33 U.S. cents higher at $112.09 a barrel.[46] Energy prices The May contract for benchmark U.S. light, sweet crudes increased 3¢ to $110.14/bbl Apr. 11 on the New York Mercantile Exchange.[47] The contract closed at a record high of $111.76 at the end of floor trading Monday on the New York Mercantile Exchange.[46] By early afternoon trade in New York, May contracts for West Texas Intermediate had eased back but were still $1.69 higher than Monday'''s close at $113.45 per barrel on the New York Mercantile Exchange.[21] Crude for May delivery was up $1.16, or 1.1%, at $111.38 a barrel on the New York Mercantile Exchange, after hitting an intraday high of $111.79.[36] NEW YORK (MarketWatch) -- Crude-oil futures accelerated their gains Tuesday and surged to a new record of $113.93 a barrel on the New York Mercantile Exchange.[48]

Brent crude on the ICE futures exchange rose $US1.09 to settle at a record $US109.84 a barrel after earlier making a new all-time intraday high of $US110.01 a barrel.[25] Crude oil futures for delivery in three months were up $1.61 or 1.47 percent to $111.10 a barrel on the London ICE Futures Exchange today. This article is copyrighted by International Business Times.[1] Brent crude for May settlement rose as much as 61 cents, or 0.6 percent, to $110.45 a barrel, an all-time intraday high, on London's ICE Futures Europe exchange. It was at $110.33 at 3:13 p.m. Singapore time.[16] In London, Brent crude futures rose 44 cents to $109.19 a barrel on the ICE Futures exchange. Associated Press writer Gillian Wong in Singapore contributed to this report.[32]

Brent crude for May settlement gained $1.09, or 1 percent, to close at a record $109.84 a barrel on London's ICE Futures Europe exchange.[43]

Brent crude oil traded on the London ICE futures bourse surged to a record US$111.85 per barrel in late trading yesterday. The oil rally also boosted sentiment across the commodity markets, lifting prices of gold and copper, as well as edible oils, such as soybean and crude palm oil (CPO).[34] The U.S. crude oil futures contract traded up 1.7% at US$113.66 per barrel during European trading hours.[34]

The record high crude oil price was likely to eat into the profits of airlines and shipping companies, analysts said. RHB Research Institute raised its jet fuel cost assumption from US$85 per barrel to US$100 for the period 2008 to 2010 and, at the same time, cut profit forecast made for Malaysian Airline System Bhd and AirAsia Bhd.[34] Crude oil prices climbed to within a penny of $114 a barrel, setting new records as concerns mounted about global supplies.[3]

HOUSTON, Apr. 14 -- Crude prices were essentially flat Apr. 11 but managed a weekly gain in the New York market as the International Energy Agency in Paris again reduced its estimate of global crude demand for 2008. IEA trimmed its previous estimate by 310,000 b/d to 87.2 million b/d as a result of the downgrading of global gross domestic product prospects by the United Nation's International Monetary Fund, coupled with "a change in former Soviet Union methodology and baseline data revisions," officials said. IEA increased its estimate of 2007 demand, up 140,000 b/d to 86 million b/d. "As a result of these divergent shifts, demand growth in 2008 is now expected at almost 1.3 million b/d, or 1.5% over 2007," IEA reported. Its estimate of global oil supply fell by 100,000 b/d in March to 87.3 million b/d, due to reduced supplies from the Organization of Petroleum Exporting Countries, the North Sea, and non-OPEC Africa (OGJ Online, Apr. 11, 2008).[47] April 15 (Bloomberg) -- Crude oil rose to a record in New York as bad weather forced the closure of export terminals in Mexico and on rising fuel demand in China, where the economy is forecast to grow by 10 percent in the first quarter.[16]

The euro is trading less than 1 cent from a record high against the dollar, spurring interest in energy and metals. China, the world's second-largest oil consumer, imported 25 percent more crude in March versus a year ago, offsetting projected demand declines in the U.S. this year.[38] The latest surge in crude prices is partly due to weakness in the U.S. dollar, analysts said. As the dollar has dropped versus the euro, many investors have flocked to commodities such as oil and gold to preserve the value of their assets. "Those Pavlovian dogs are barking. Until someone breaks them out of that paradigm, they're going to keep trading that way," said Schork.[18] Oil prices, meanwhile, rose to a record settlement and later hit an intraday trading record in Asia as the dollar fell and crude supplies were disrupted in the U.S. and overseas.[11]

Last week, oil prices shot to new records after weekly data from the U.S. Energy Information Administration showed U.S. crude, gasoline and distillate stockpiles posting unexpected declines.[25] 'The physical oil market appears tight and appears highly sensitive to news of any supply interruption,' said Fairfax analyst John Mayer. Prices could be set to rally further later this week if the upcoming spate of U.S. economic data and the weekly inventories report from the Dept of Energy prove supportive, according to analysts.[49] JBC Energy in Vienna, Austria, called the IEA report the "strongest downward monthly revision in years," and also noted that gasoline consumption in the United States was expected to fall lower "for the first time in years." More negative U.S. economic data also appeared to have taken steam out of oil's precipitous price rise this week.[32]

"The conventional thinking has been if we take out $112.20, we are going higher," said Michael Korn, president of Skokie Energy Corp., a brokerage in Princeton, N.J. The market is also expected to take direction from a slew of U.S. economic releases this week, including data on U.S. business inventories Monday, the producer-price index Tuesday and, on Wednesday, the consumer-price index, housing starts and oil inventories. "Virtually all of these releases are expected to have a significant impact on the U.S. dollar," said Jim Ritterbusch, president of Galena, Ill. -based oil trading advisory service Ritterbusch and Associates, in a note.[45] The U.S. dollar's weakness early on also stirred buying in crude, a U.S. dollar-denominated commodity, as the greenback's decline makes oil relatively affordable for buyers using other currencies. "The Capline pipeline appears to be back online, the dollar has actually turned stronger against the euro in the afternoon, but crude just seems to have a mind of its own right now," said Addison Armstong, an analyst at Tradition Energy, a brokerage in Stamford, Conn.[25] "The G-7's warning against excessive currency fluctuations was interpreted by the market as saying the dollar's fallen way too much and too fast," Victor Shum, an energy analyst with Purvin & Gertz in Singapore, told The Associated Press news agency on Monday. "This comment may underpin the U.S. dollar in the near term and thereby reduce the interest of financial investors to pile money into oil and other commodities," he added.[15]

"Unfortunately, we do expect the price of gasoline, and probably diesel as well, are going to escalate as long as the price of oil keeps moving higher," said Geoff Sundstrom, a fuel price analyst for AAA. Oil's recent run above $100 a barrel has been largely attributed to a steadily depreciating dollar, because the weakness prompts investors to seek a safe haven in hard commodities such as oil and gold.[4] Technically oriented investors may help in pushing the price of oil to $125 a barrel, according to Mr. Newsom, as Tuesday's new high could motivate more buyers.[40]

In March 2005, when U.S. crude was testing new highs above $55 a barrel, Goldman Sachs said oil had entered the early stages of a "super-spike" period that could see prices surge as high as $105 a barrel, without saying when that would happen.[35] Oil in New York climbed to a record $112.21 a barrel on April 9 after the U.S. reported an unexpected decline in inventories.[43] The U.S. dollar declined by 0.2 percent against the 15-nation European currency to $1.5857 per euro, while the dollar plunged against the Japanese currency to 100.74 yen per dollar, compared to 100.90 yen in New York on Friday.[15] The euro traded at $1.5829 per dollar as of 7:20 a.m. in London from $1.5832 late in New York yesterday.[16]

NEW YORK (Dow Jones)--Crude oil futures were lifted higher Monday on supply interruptions and the dollar's decline against the euro.[45] NEW YORK, April 15 (Xinhua) -- Crude-oil rose Tuesday to a new trading record of 113.99 dollars a barrel on supply concerns in Russia, Mexico and Nigeria and a weakening dollar.[28] Associated Press - April 15, 2008 10:03 AM ET VIENNA, Austria (AP) - Oil prices have hit another trading record, this time topping $113 a barrel[10] Oil touched $111.99, the second-highest intraday price. Gasoline for May delivery settled at a record $2.8218 a gallon after touching $2.8417, an all-time high for the fuel blended with ethanol, known as RBOB. It began trading in October 2005.[43]

Retail gasoline prices rose to a new average national record of $3.386, according to AAA and the Oil Price Information Service.[50] Retail gasoline prices rose to a new average national record of 3.386 dollars, according to American Automobile Association and the Oil Price Information Service.[28]

At the pump, the national average price of a gallon of gas edged lower overnight to $3.373 a gallon, 0.1 cent shy of a new record set Sunday, according to a survey of stations by AAA and the Oil Price Information Service.[11] NEW YORK (AP) — Gas prices fluctuated over the weekend but appear poised to resume their seemingly relentless trek toward a record high milestone of an average $3.50 a gallon.[11]

At-the-pump prices in the United States also rose to new records, with gasoline averaging $3.386 per gallon and diesel up to $4.119 per gallon.[26] Dietz added the one saving grace in the current oil market has been, ironically, U.S. consumers, who are starting to cutback consumption of gasoline, due to record-high gasoline prices, which average about $3.32-$3.39 per gallon nationally. U.S. weekly gasoline consumption has been flat or lower, on a year-over-year basis, for about three months, he said. Had gasoline demand risen this spring, it would have pushed oil's price even higher, "because more valuable gasoline makes the raw product, oil, more valuable."[37] Gasoline prices typically increase over the U.S. summer months. The U.S. Energy Department recently predicted gasoline prices could average as much as $3.60 per gallon this summer, and could spike as high as $4 a gallon, at times.[42]

Forecasts call for gas to peak as high as $3.65 within a month. The run-up in gasoline prices has followed crudes rally, distressing U.S. motorists ahead of the peak summer driving season when many Americans take to the road for their holidays.[42]

PETALING JAYA: Crude oil prices jumped to new highs yesterday, supported by weak outlook for the U.S. currency, minor supply disruption in Mexico and fresh production worries in Nigeria.[34] "We are already in the ninth year of the investment phase across the commodity sector and the oil sector, we've had an astounding oil price rally and still we are not seeing the supply side issues that caused the oil price rally resolved." As examples, he cited Iraq's and Mexico's refusal to permit foreign investment in oil production on their soil. He added restrictions in the U.S. on foreign investment in agriculture have starved that industry of the capital it needs to keep up with demand -- especially in view of the growing impact of biofuel production on food prices, which are now linked with energy prices.[35] On the other hand, some investors waited for earnings to improve, according to Bank of America analyst Douglas L. Becker. "We expect oil services shares to take a breather as the shares wait for earnings to 'catch up,'" he wrote Tuesday in a client note. He said shares of oilfield services companies peaked earlier this year before companies posted lower earnings. Those lower earnings "were driven entirely by excess supply, not demand," he wrote, outlining strong upside potential for the sector as a whole. Becker identified as possible risks to his generally positive outlook a global economic recession, a slowdown in capital spending for exploration and production, sustained weakness in commodity prices or geopolitical instability in international markets.[30]

The report raised concerns about whether the key oil-producing nation will have enough supply to help feed growing global demand. Russia, the world's biggest oil exporter after Saudi Arabia, averaged 10 million barrels per day from January through March, down 1 percent from 2007, says the report, adding that this is the first time production has failed to exceed previous-year figures since 1998.[28] The report from the International Energy Agency — the Paris-based energy watchdog for industrialized countries — said Russia, the world's biggest oil exporter after Saudi Arabia, averaged 10 million barrels per day from January through March, down 1 percent from 2007 and the first time production has failed to exceed previous-year figures since 1998.[6]

The latest move came as one of Russia's top energy executives said the country's oil production has peaked and may never return to current levels. Leonid Fedun, the 52-year-old vice-president of Lukoil, Russia's largest independent oil company, told the Financial Times he believed last year's Russian oil production of about 10 million barrels a day was the highest he would see 'in his lifetime'.[20]

Prices at the pump have also risen to new highs. Traders focused on a report from the International Energy Agency which says Russian oil production dropped this year for the first time in a decade.[50] Oil surged to an all-time high of US$114.08 a barrel on Tuesday after a high-profile report by the International Energy Agency said that Russian oil production dropped this year for the first time in a decade.[33]

As crude oil and gasoline rose to all-time highs Monday, energy analysts offered a bit of hope that prices will retreat later in the year, although perhaps not until the peak summer driving season has ended. "Take your vacation late this year," said Jim Ritterbusch, president of Ritterbusch and Associates, an energy consultancy in Illinois. [12] Analysts surveyed by Dow Jones Newswires on average predict the data will show that last week crude stockpiles rose by 1.4 million barrels, gasoline stockpiles fell by 1.5 million barrels and stocks of distillates, which include heating oil and diesel fuel, fell by 1.4 million barrels.[25] After data released two Wednesdays ago showed crude stockpiles rose by 7.3 million barrels in the week ended March 28, front-month Nymex crude jumped $US3.85 a barrel in one day.[25]

The gains came after mixed trading at the end of last week, and were supported by the weekend closure of the 1,046-kilometer-long, 1.2 million barrel per day Capline pipeline the main crude artery from the U.S. Gulf Coast to the Midwest.[42] The Capline pipeline the Royal Dutch Shell PLC conduit that carries 1.2 million barrels of crude each day from the U.S. Gulf Coast to the Midwest was closed on the weekend, and has since resumed operations at a slightly reduced capacity. In Nigeria, Italian energy giant ENI reported a 5,000 barrel per day reduction in production at one of its facilities.[31] Crude oil shipments along one U.S. pipeline were said to be moving below capacity. Italy's ENI reported a 5,000 barrel per day reduction in production at one of its facilities in Nigeria.[6] Eni's Nigerian venture halted production at some oil wells following explosions on April 12 near the Beniboye area in Delta state, the company said yesterday. The shutdown, blamed on "sabotage,'' has cost Eni about 5,000 barrels a day in output, the Rome-based company said in a statement posted on its Web site. Petroleos Mexicanos, the third-largest supplier of crude to the U.S., shut its crude oil export terminal on the Pacific coast yesterday, the fourth terminal to close because of bad weather since April 13. The terminal at the port of Salina Cruz closed today, Mexico's Merchant Marine reported in a weather bulletin posted on its Web site.[22] Recent production outages are causing particular concern in the present market amid longer-term worries over stockpile levels in major consumer countries, analysts say. Mexico said on Monday it had closed four export terminals due to bad weather, while oil giant Shell said shipments over its 1.1 mln barrel per day Calpine (other-otc: CPNLQ.PK - news - people ) pipeline in the southern U.S. had been temporarily disrupted.[49]

Oil surged over $113 per barrel Tuesday on word of supply disruptions in Nigeria and Mexico and increasing fuel demand in China, Bloomberg News reported Tuesday.[37]

SINGAPORE (Thomson Financial) - World oil prices touched record highs above $112 a barrel in Asian trade Tuesday, boosted by supply concerns and a sluggish greenback.[46] Oil prices rose as high as $113.99 a barrel during the regular session before settling at $113.79, up $2.03 from Monday's record close of $111.76 a barrel.[4]

Light, sweet crude for May delivery rose $1.62 to settle at a record $111.76 a barrel Monday as the dollar weakened.[11] Light, sweet crude for May delivery settled at a record $113.79 a barrel after touching a new trading high of $113.99 a barrel in early morning electronic trading.[18] Brent crude for May delivery, which expires tomorrow, was up $1.27 at $111.11 a barrel, a new all-time record.[49]

At 11.56 a.m., New York's West Texas Intermediate crude for May delivery was up $1.09 at $112.85 a barrel.[49] Gasoline for May delivery climbed 3.97 cents, or 1.4 percent, to $2.8615 a gallon in New York.[8] Gasoline futures for May delivery, already at record levels, rose 4 cents per gallon to $2.84.[5] Heating oil futures for June delivery were up 1 cent per gallon at $3.16.[5] Nymex May gasoline was up 4 cents to $2.86 per gallon at last report, while June heating oil had added 1 cent to $3.16 per gallon and May natural gas had gained 17 cents to $10.23 per million British thermal units.[26] Heating oil fell a hair to $3.19 a gallon, and near-term natural gas advanced 4 cents to $9.94 per million British thermal units.[51]

Crude oil traded at $112.07 a barrel, up 31 cents, at 3:13 p.m. in Singapore. [16] The intraday high was surging close to $114 a barrel, as the U.S$. fell and crude oil shipments along a U.S. pipeline were reportedly below capacity.[10] Crude oils recent run above US$100 a barrel has been largely attributed to a steadily depreciating U.S. currency, because a weakening dollar attracts investors to commodities as a hedge against inflation.[42] With the dollar showing weakness many investors moved to crude oil as a hedge against inflation Tuesday after Monday's news of Wachovia Bank reporting wide quarterly losses.[5]

Investors were digesting today's report showing a rapid acceleration in wholesale price inflation, and another record close for crude oil prices.[44] Record oil prices are crimping profits at airlines, boosting food costs and contributing to rising inflation across the globe. Petroleos Mexicanos, the third-largest supplier of crude to the U.S., shut its crude oil export terminal on the Pacific coast yesterday, the fourth terminal to close since April 13. The terminal at the port of Salina Cruz closed today, Mexico's Merchant Marine reported in a weather bulletin posted on its Web site.[16] Based on my 30 years research on U.S., global fuel, crude oil supply chain demadn, cost price mechanism.[40]

The trader also pointed to China's oil use as contributing to oil prices. China, the world's second-largest oil consumer, imported 25 percent more crude in March versus a year ago, offsetting projected demand declines in the U.S. this year, the report said.[39] The Commerce Department reported last week the first decline in oil imports in a year — a possible sign that high prices and an economic downturn were hurting crude sales. "The weight of the gloomy economic picture in the U.S. and to a certain extent other countries. is getting heavier, and it's putting a heavy lid on oil pricing," Shum said. He said, oil's movements continue to be largely influenced by fluctuations in the dollar.[32] Crude rose in spite of a U.S. dollar that rebounded on the day, increasing oil's relative price for consumers with other currencies.[9] LONDON (Thomson Financial) - Oil prices rallied to new highs on both sides of the Atlantic in late morning trade as renewed weakness in the U.S. dollar and fears over supply disruptions fuelled buying.[49] Oil prices also rose on word of supply disruptions, including the weekend closure of a 1.2 million barrel a day Royal Dutch Shell PLC pipeline in the Midwest due to a leak.[11] Capacity. The oil-producing giants, such as Saudi Arabia and Iran, are pumping about as much oil per day as they possibly can spare capacity is barely a couple of million barrels, and demand continues to outstrip this supply.[40]

Since mid February we have seen the price of oil increase from $87 to $113 (approx. 29%) and in March there was a 10% drop over a two days, can supply and demand be react in real time? My theory (and I can't prove it) is that there a couple guys out there with nervous trigger fingers who are adding a shaky premium on to the price.[40] "In the $60 U.S. range, the economics of biofuel began to make senses. transforming energy problems into food problems." Market speculators may influence the day-to-day price fluctuations, Serio said, but they have very little to do with the five-year long-term contract prices, noting the market's deeply ingrained structural constraints mean supply cannot easily rise to meet increasing demand from emerging countries such as China and India.[35] The contract had hit a trading record of $112.21 per barrel last week following a U.S. government report showing an unexpected decline in inventories.[42] The May contract expired yesterday after rising 1.3 percent, to $111.31 a barrel, a record close. It touched $112.08, the highest intraday price since trading began in 1988.[7]

The May-dated West Texas Intermediate crude contract climbed 74 cents to $110.88 a barrel after trading above $111 for most of the day.[51]

Crude oil prices may be flirting with record highs, but one would never know it from the performance of some energy stocks. Some of the biggest names are still trading where they were last summer or lower. [41] April 14 (Bloomberg) -- Crude oil was little changed near a record settlement price after the Group of Seven Nations failed to end the dollar's slide against the euro.[43] CRUDE oil futures cruised to a new record settlement high overnight, holding fast to gains made on supply disruptions over the weekend.[25] Market sentiment remained bullish after latest U.S. government data showed a surprise sharp fall in the country's energy stockpiles, while the sluggish dollar also contributed to the surge in crude oil futures.[24] AFP meanwhile cited dealers as saying that market sentiment remained bullish after the latest U.S. government data showed a surprise sharp fall in the country's energy stockpiles, while the weak dollar also contributed to a surge in crude oil futures.[39]

"Investors are selling dollars and buying oil and other commodities,'' said Victor Shum, a senior principal at Purvin & Gertz Inc. in Singapore. China's growing consumption of oil "really counterbalances the decline in the U.S.,'' he said. The likelihood of the Fed cutting its target rate for overnight lending between banks by a half-point to 1.75 percent on April 30 rose to 52 percent from 36 percent a week ago, futures contracts on the Chicago Board of Trade show.[16] Oil has risen 37 percent and the dollar has dropped 12 percent against the euro since the Federal Reserve began lowering interest rates on Sept. 18. The likelihood of the Fed cutting its target rate for overnight lending between banks by a half-point to 1.75 percent on April 30 rose to 52 percent from 36 percent a week ago, futures contracts on the Chicago Board of Trade show. European Central Bank council member Yves Mersch said in an April 12 interview in Washington that policy makers can't afford to cut the region's 4 percent main refinancing rate this year because it would accelerate inflation.[43]

After weeks of high volatility and uncertainty, oil futures appear to be again in an upward trend, according to analysts at Barclays Capital Research. Data released last week by the Commodity Futures Trading Commission showed that investors increased their net-long positions by 17,600 lots during the week ending April 8. It was the first weekly gain in net-long positions in four weeks, indicating that traders are finally regaining their confidence since commodity prices dove in mid-March. [51] Large speculators still hold substantial long positions in crude oil, natural gas and heating oil, according to the weekly data from the Commodity Futures Trading Commission, and buying from funds has remained healthy. "It seems to be one of the only profitable homes for speculative money," says Mr. Williams.[40]

Heating oil. It seems strange, but while gasoline tends to be the chief catalyst for the pre-summer rally in crude oil, heating oil has asserted itself as a major factor. That's because of increased demand for distillates such as ultra-low-sulfur diesel. Such products, along with jet fuel, impact the trading in heating oil.[40]

If there is a bottle neck in refining capacity, wouldn't that suggest a lower price for crude oil (right now), but I higher price for finished products (e.g. heating oil). It has been the same story regarding fundamentals for years, i.e. China and India insatiable appetite.[40] Last spring, a string of unanticipated refinery outages caused gas prices to peak at record levels in May. Prices then mostly fell until late in the year, when they began to track crude oil higher.[11] Over the period of one year, prices of crude oil have gone up by 74 percent.[15]

Published: April 15, 2008 at 3:55 PM Crude oil prices surged Tuesday on news that Mexico, the third largest exporter to the United States, had suspended shipments from three oil ports.[52] Associated Press - April 15, 2008 12:53 PM ET NEW YORK (AP) - The consumer's nightmare of rising oil and gasoline prices shows no sign of letting up[50] The broad index includes the prices of food and energy, and hints a similar trend when consumer prices are released tonight. "It's kind of a game where inflation uncertainty is high enough that oil prices can be affected by it," said Adam Robinson, energy research analyst at Lehman Brothers in New York.[9]

CERI's conference is subtitled "What price energy security?" and president and CEO Marwan Masri opened the proceedings by saying there are many definitions of security. "In the United States, energy security is energy independence," he said. "To the Chinese, it's going overseas. To the Russians, it's restricting foreign ownership." Producers of energy products look for a secure supply of customers and consumers want secure supplies, he said. He reminded his audience that, corrected for inflation, current oil prices in the $110 range are about the same as at their peak in 1979.[35]

The collapse of China's indexes has hurt the shares, but so has the company's falling profit margins. Citigroup Global Markets Inc. recently downgraded PetroChina to a "sell" from "hold" and cut its price target to $9 a share from $15.40, saying that while higher oil prices will boost profits from the exploration and production division, it expects that will be more than offset by higher losses in PetroChina's refining operations.[41] "However, in the longer run a sharp slowdown in the U.S. economic activity could put some pressure on oil prices, especially if demand for energy softens elsewhere and we see lower than expected growth figures in Europe and Asia, with a downturn in the U.S. weighing on global growth."[19] Matthew Pugsley, managing editor of U.S. equity strategy at BCA Research, pointed out that not all energy stocks are languishing. "If you look beneath the surface in the U.S., you would see that some of the energy service stocks are very strong; the exploration and production stocks are very strong," he said. Those groups are actually reflecting the strength in the price of oil. He noted the high crude prices are hurting refining margins.[41] "I certainly expect to see inventories continue to build," said Stephen Schork, Villanova, Pa. -based editor of the energy markets newsletter the Schork Report. The oil market has spiralled higher since the start of the year, he noted, even though U.S. crude inventories have climbed about 9 per cent over the same period. "A build this Wednesday, for me and the market, means nothing," Mr Schork said.[25] The other big oil companies of the world aren't down as much, but are still underperforming crude prices. Exxon Mobil Corp.' s stock price has fallen 4 per cent so far this year.[41]

Crude closed at $111.76 (U.S.) yesterday, which means it is up nearly 76 per cent over the last year and has doubled since December, 2006.[41] Nymex crude is up 19 per cent in 2008 and 79 per cent from a year ago. Its strength has lured investment funds seeking a hedge against inflation and the falling U.S. dollar.[9]

"We've seen another swing down in the U.S. dollar so I think we saw short term traders go back into oil as a hedge against the falling dollar," said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia. Stephen Schork, in his Schork Report, described the rush into oil on the falling dollar as an automatic reflex. "Traders on the Nymex saw the dollar take another tumble, so they did what they have been conditioned to do when the dollar falls, i.e. they bought crude oil," he wrote.[6] The weakening U.S. dollar also added to the rise of crude oil in the global markets.[15]

A disruption in a major U.S. oil pipeline and another downward move in the U.S. dollar nudged crude futures higher Monday.[51]

Crude futures today have surged to new highs, near $114 a barrel, after the dollar fell amid fresh concerns about supplies.[50] Brent crude was up $1.73 to $111.57 per barrel on the ICE Futures Europe exchange in London.[21] May Brent crude on the ICE futures exchange, which expired Tuesday, closed $US1.42 higher at $US111.26 a barrel.[9]

In London, May Brent crude rose $1.09 to settle at $109.84 on the ICE Futures exchange.[42] In London, Brent crude futures rose 55 cents to US$110.39 a barrel on the ICE Futures exchange.[31]

Earlier, futures rose $1.62, or 1.5 percent, to settle at $111.76 a barrel, the highest close since trading began in 1983.[43] Prices have gained 78 percent in a year and yesterday rose $1.62 to settle at $111.76, the highest close.[22]

The national average retail price for regular gasoline rose 1.5 percent _ up 5 cents _ to $3.35 a gallon. McNamara said he will be watching year-over-year demand numbers around the beginning of May.[3] Today, retail gasoline prices rose to a record of nearly $3.39 a gallon. Delta shares lost 12% of their value today, while Northwest stock fell 8%.[53]

U.S. stocks crept higher on Monday with energy shares buoyed by record oil prices and moods lifted by better-t.[33] Ritterbusch said prices could rise a few dollars higher than last week's record, but expects that moves by world governments to support the dollar will send oil prices lower later in the year.[11] In a year, prices have gained 78 percent, Bloomberg noted. The dollar stood near record lows against the euro on Tuesday ahead of financial results from major corporate firms this week.[1]

In other commodities news, gold finished higher overnight, but one analyst suggested limited progress could be a sign of more consolidation to come considering precious metals weren't able to benefit more from record highs in crude oil and a surge in wholesale inflation. Observers reported that a pullback in the euro prompted gold and silver to pull back from their earlier highs. [9] Crude oil for May delivery was last up $2.02 at $113.78 a barrel on the Nymex.[48] Crude oil for May traded at $113.40 a barrel, up $1.64, at 1:15 p.m. in London.[22] Crude oil today reached an inflation-adjusted $49.36 a barrel, the highest ever, according to Bloomberg calculations.[16]

Crude oil stockpiles slumped by 3.2 million barrels and gasoline inventories shed 3.4 million barrels, the DoE said.[46] An Energy Department report today is forecast to show that U.S. gasoline inventories dropped 1.8 million barrels last week, according to the median of 16 responses in a Bloomberg News survey.[7] Oil supplies advanced 1.3 million barrels in the week ended April 11 from 316 million barrels, according to the median of responses by 10 analysts before the Energy Department report.[16]

Analysts also projected a 1.7 million barrel drop in distillate stocks, which include heating oil and diesel, while refinery utilization rates were expected to jump 0.9 percentage points to 83.9 percent.[33] Supplies of distillate fuels, a category that includes heating oil and diesel, fell 1.6 million barrels from 106 million the prior week.[16]

The kingdom is the world's largest oil exporter and produced 9.2 million barrels a day last month, according to Bloomberg data.[14] The line, with a capacity of 1.2 million barrels a day, connects Louisiana to an oil hub in Illinois.[25]

The company is the third largest exporter of crude to the United States. In Nigeria, Italian energy group ENI reported a 5,000 barrel per day reduction in one of its oil wells after an explosion on April 12 near the Beniboye area in Delta state, Eni announced yesterday.[1] The Royal Dutch Shell PLC pipeline has since resumed operations at a slightly reduced capacity. Helping fuel crudes rally was a decline in the dollar and a 5,000 barrel per day reduction in production by Italian energy giant ENI at one of its Nigerian facilities.[42]

China's imports of diesel fuel jumped 49 percent in March while crude inflows climbed 25 percent during the month. "Oil is matching gold as a hedge on the dollar so it's certainly being seen as a financial instrument,'' said Mark Pervan, a senior commodity strategist at Australia & New Zealand Banking Group Ltd. in Melbourne.[7] 'Oil prices have been firm and it partly reflects the soft tone of the U.S. dollar,' said David Moore, a Sydney-based commodity strategist with Commonwealth Bank of Australia.[46] Oil prices rebounded Monday on reports that a U.S. oil pipeline was shut for repairs and as the dollar weakened again against other currencies.[32] Analysts said reports of a temporary shutdown to repair a small leak in Shell's Capline pipeline system, which transports oil into the U.S. Midwest, helped boost prices, which had fallen earlier in Monday's session. "We would expect repairs to be done quickly but until confirmation of completion this will be a supportive flag to watch for," said Olivier Jakob of Petromatrix in Switzerland in a research note.[32]

Shell Oil Co.' s 667-mile Capline oil pipeline was shut down over the weekend as workers tried to repair a leak. That pipeline transports 1 million b/d of crude to the Midwest from the Gulf of Mexico. No timetable for a return to service has been announced, said analysts Apr. 14 in the Houston office of Raymond James & Associates Inc. They also said natural gas prices should remain near current levels if the year-over-year storage deficit hovers above 300 bcf "like we expect until later this summer."[47] Brent settlement prices weren't immediately available. Nymex crude broke price records early on word Mexico had shut its three oil exporting ports in the Gulf of Mexico on Sunday and Monday.[9]

Traders were awaiting the release of U.S. government data later Wednesday on the state of Americas petroleum supplies. Last weeks EIA report showed an unexpected drop in crude inventories, which started oil on its way to several records.[33] Investors are choosing to shrug off fears slower U.S. growth may crimp oil demand, focusing instead on dwindling stockpiles and the weakening greenback, which makes dollar-denominated crude cheaper for holders of other currencies.[49]

Serio, in the opening keynote address to the Canadian Energy Research Institute 2008 World Oil Conference at the Fairmont Palliser hotel, said oil prices are also being boosted by political protectionism that is causing a shortfall in investment, preventing producers from matching demand growth. "We actually believe that political restraints at this point are limiting the ability of the energy sector to expand its production capacity.[35] Huge demand for commodity investments - particularly in energy - have sent oil prices skyrocketing, says Tom Kloza, chief oil analyst for the Oil Price Information Service.[27]

"As the dollar weakens then the oil price becomes cheaper in terms of the euro and that encourages buying, so there may be some people who view oil as a hedge against dollar weakness,'' said David Moore, the commodity strategist at Commonwealth Bank in Sydney.[16]

"To the extent that we will be looking for surprises to fall toward the negative side, a run at record lows in the dollar against the euro is likely and could spur another push to record highs in the oil futures." Signaling that supply from the Organization of Petroleum Exporting Countries is likely to remain steady through the summer, the producer group's president told Dow Jones Newswires in an interview that he will not be attending an oil producer-consumer meeting in Rome later this month, nixing the possibility that OPEC might call an extraordinary meeting there to consider whether they should take action amid dramatic developments in the global oil market.[45] With the euro trading less than $0.01 from a record high against the dollar, interest in energy and metals is spurred.[39] Futures touched $2.8715, an intraday record for gasoline to be blended with ethanol, known as RBOB, which began trading in October 2005.[8] Gasoline futures jumped by nearly 6 cents to finish at a settlement record of $2.881. That is less than a nickel below the all-time intraday high for the benchmark contract that was set as Hurricane Katrina made landfall in 2005.[4] The contract closed at a record settlement price of $111.76 a barrel on Monday.[30]

The refusal to rationally develop our own resources probably adds $10 barrel to the price of oil, not the $50 or $70 extra we're seeing today.[40]

Prices are 0.8 cent higher than Friday, and almost 53 cents higher than a year ago. The Energy Department recently predicted gas prices could average as much as $3.60 a month this summer, and said the daily national average could rise as high as $4 a times.[11] Natural gas has also been on the move, rising from $5.29 last September and $7.16 at the end of last year, to $10.03 now. Those impressive commodity price gains haven't been reflected in the prices of some energy issues.[41]

The average price for OPEC's basket of 13 reference crudes dipped by 7¢ to $103.67/bbl on Apr. 11. This year, the OPEC basket price has averaged $93.47/bbl.[47] Larry is right to point out the acceleration of the price spiral here even as the fundamentals seem to be weakening. The U.S., which consumes 25% of the world's oil, is expected (according to the DOE) to have its biggest decline in gasoline consumption in a generation this year.[40] The latest consumer confidence date released last Friday revealed the lowest figures since 1982. Plus, last week the International Energy Agency revised its previous estimate for total global energy demand in 2008 downward by 320,000 barrels a day, mostly due to gloomy projections for U.S. GDP this year.[51] The cartel, which pumps 40% of global crude supplies, added that soaring prices reflected high volatility in the market. It blamed this on factors such as financial market turmoil, the weaker dollar and a worsening outlook for the U.S. economy.[20] Additional boost to the prices came from the weakening of the U.S. dollar in the global markets as the speculations on the condition of corporate earnings reports indicate that the U.S. economic prospects have worsened.[15]

Oil gained as the U.S. dollar weakened against the euro and some production was halted in Nigeria.[35] "Weve seen another swing down in the U.S. dollar so I think we saw short term traders go back into oil as a hedge against the falling dollar," said Mark Pervan, senior commodity strategist at the ANZ Bank in Melbourne, Australia.[31] Fears that the price of the precious commodity will seriously hamper U.S. economic growth in the short term kept the U.S. dollar under pressure.[17]

The weak dollar. This is a bit of an old story, of course, but the dollar's weakness makes the commodities that are dollar-backed all the more valuable for foreign investors. The U.S. Dollar Index, which tracks the currency against those of six trading partners, lately traded on ICE Futures at 72, not far from its all-time low of 70.7.[40]

SAN FRANCISCO (MarketWatch) -- Crude-oil futures rose more than $1 to close above $111 a barrel on Monday, propelled by the dollar's decline against other major currencies and stronger-than-expected retail data.[13] May natural gas futures rose 15.2 cents to settle at $10.053 per 1,000 cubic feet.[11] Natural gas futures for May delivery climbed 12 cents per thousand cubic feet to trade at $10.17.[5] Natural gas futures spiked more than 16 cents to $10.22 per 1,000 cubic feet. Associated Press Writer Gillian Wong contributed to this report from Singapore.[6]

Natural gas rises 26 cents to $10.06 per million British thermal units.[51]

London's Brent North Sea crude for May delivery was 42 cents higher at $110.26 a barrel, easing slightly after striking an intra-day high of $110.45. [46] Contracts for May light sweet crude briefly traded at a new intraday peak of $112.48 before easing to 112.33 dollars by mid-morning trade, AFP said.[39] The dollar fell to $1.5842 to the euro at 7:24 a.m. in New York, from $1.5808 on April 11.[14] At $89.70 (U.S.) on the New York Stock Exchange, Exxon shares still have a way to go to match last October's high of $95.27. Chevron Corp. shares are currently changing hands at $89.30, but that is still significantly below its high of $95.50 set last September. ConocoPhillips Co. shares, at $79.81, are even further off their peak of $90.84 established last July.[41] By the afternoon in Europe, the 15-nation euro bought $1.5857, up from the $1.5835 it bought in New York late Friday.[32]

Oil in New York surged 79 percent in the past year as the Standard & Poor's 500 Index dropped 8.5 percent and the Dow Jones Industrial Average declined 2.3 percent.[7] NEW YORK -- Shares of oilfield services companies were mixed Wednesday, as record crude-oil prices lifted some but others fell in what one analyst said was "a breather as the shares wait for earnings to 'catch up.'"[30] The price of oil shot to a record Tuesday, pushed up by supply worries - and a gusher of new money into the commodities markets.[27]

"Overall, crude prices remain well in the short run with the persistent weakness in the dollar, strong fund interest, various supply disruptions and strong demand for distillate fuels from Asia and Europe," said Sucden analyst Andrey Kryuchenkov.[19] Prices were supported by a generally weak dollar was well as by continued supply disruptions in Nigeria and by news of port closures in Mexico due to bad weather.[26]

The pipeline system, which runs from the Gulf of Mexico to the Midwest, provides crude to refineries like BP Plc's 420,000 barrel-a-day plant in Whiting, Indiana, and Marathon Oil Co.' s 239,000 barrel-a-day facility at Catlettsburg, Kentucky, according to Bloomberg news report.[15] Affecting supplies was news that Petroleos Mexicanos, the third largest supplier to the U.S., had closed two oil export terminals in the Gulf of Mexico due to heavy wind and lighting.[36]

In other news, the U.S. dollar fell against most major currencies as finance ministers of the Group of Seven leading nations and central bankers met in Washington, DC. During that meeting, Joaquin Almunia, the European Union's economic and financial affairs commissioner, said the euro is overvalued in foreign exchange markets.[47] The dollar dived to a new low of $1.5913 to the euro Wednesday and since then has regained only a little ground against the European unit.[46]

The recent increase in crude prices above $100 has been mainly attributed to a downgraded dollar that triggers investments into commodities to compensate for inflation.[1] The more actively traded June Brent crude contract closed at $US111.47 a barrel, up $US1.89.[9] The near-month contract for the benchmark grade rose $2.03 -- closing at $113.79 a barrel.[29] Gold futures for June contracts on the CMX rose $2.30 an ounce to $931.00 after having reached an intra-morning high of nearly $940 an ounce.[5] Platinum futures for July delivery rose $33.50 an ounce to trade at $2,015.[5]

Heating oil for May delivery inched up by 0.35¢ to $3.20/gal on NYMEX. The May RBOB contract gained 1.52¢ to $2.81/gal. [47] Silver contracts for May delivery climbed more slowly, rising 4 cents per ounce to trade at $17.83.[5]

Shares of state-run Petrobras shot up more than 8 percent on the news and remained positive in Tuesday trading _ closing up 92 cents at $123.10.[3] At $49.05 (Canadian) the shares are substantially below the high of $61.25 established last July when crude was trading in the mid-$70s (U.S.) range.[41]

"The path to $115 is cleared," said Stephen Schork, publisher of the oil trading newsletter The Schork Report.[18]

As any major oil executive will tell you, there is no worldwide shortage of oil, and the market doesn't look much different from when oil was $50 a barrel. This is speculation, pure and simple.[40] Last Thursday, oil closed at a previous record $110.87, up $2.37 on the day.[35] The Rochester-area average for a gallon of regular gasoline was a record $3.49 on Monday, the second straight day at that level.[12] Diesel prices at the pump jumped to $4.119 a gallon, also a record, setting the stage for even higher prices on food and other goods transported by truck, ship and rail.[4]

Texas light sweet crude for May delivery closed at $113.79, up $2.03 from Monday's record settlement at $111.76.[27] West Texas Intermediate gained $3.91/bbl during the calendar week, set a new record high, but fell 7¢ short of registering the highest weekly close.[47] Crude-oil supplies rose 1.3 million barrels last week, according to the median of 10 responses in a Bloomberg News survey.[43] Gasoline stockpiles fell 1.8 million barrels last week, according to the median of responses in the analyst survey. It would be the fifth straight weekly decline.[43] Gasoline inventories probably dropped 1.8 million barrels from 221.3 million barrels the week before, according to the median of responses.[16]

At about 1.2 million barrels a day, Mexico is the third largest crude exporter to the United States.[9] Royal Dutch Shell PLC (RDSA)'s Capline pipeline, which conveys crude from the Gulf of Mexico to the Midwest, remained shut down Monday after a leak was discovered near Obion, Tenn. The 650-mile-long system has a capacity of 1.2 million barrels a day.[45]

Russian output fell 1.3 percent in March to 9.76 million barrels a day, compared with a year earlier.[7]

Most analysts think demand will outpace supply of deepwater rigs for years to come, and rates will remain high or rise. Rates for some of those rigs range up to $500,000 per day or more. Demand is not as strong for shallow-water jackup rigs, for which dayrates run about half or less than those of deepwater rigs and are not expected to increase much, if at all, in the next few years.[3] Adding to supply concerns, Eni, Italy's biggest energy company by revenue, said that sabotage over the weekend caused a fire at oil plants in the Nigerian location of Beniboye, causing a total output loss of about 5000 barrels a day.[25] Eni SpA's Nigerian venture halted production at some wells following explosions near the Beniboye area in the Delta state, the company said. Oil wells in Nigeria caught fire April 12, causing about 5,000 barrels a day in lost production, because of "sabotage,'' with no injuries reported, the Rome-based company said today in a statement posted on its Web site.[43]

"We just don't have enough capital going into developing the fields." Konchin said the fact that Russian oil accounted for roughly 12 percent of world supply makes this year's production drop "not particularly significant."[6] The weak dollar. Oil is priced in dollars, and the value of the dollar has tumbled 8 percent this year versus the euro.[27] Oil has risen 37 percent and the dollar has dropped 12 percent against the euro since the Federal Reserve began lowering interest rates on Sept. 18.[16]

Energy prices on a monthly basis leaped 2.9 percent in March, led by a 13.1 percent rise in heating oil and a 15.3 percent gain in diesel fuel. [27] Soaring oil prices drove wholesale prices up 1.1 percent in March from February, the second-largest increase in 33 years, the Labor Department said Tuesday.[27] "I don't think so, unless there is some sort of outage or refinery event," said Fred Rozell, retail pricing director at the Oil Price Information Service. "Take your vacation late this year," said Ritterbusch, who believes prices will dip to those lows in July or August.[11]

From here you can use the Social Web links to save Oil prices settle at new high to a social bookmarking site.[25] Record oil prices are crimping profits at airlines, boosting food costs and contributing to rising inflation across the globe.[22]

The report added that a temporary shutdown to repair a small leak in a pipeline that transports oil into the U.S. Midwest was also pushing prices up.[39] Published: April 15, 2008 at 5:13 PM A seesaw day on Wall Street closed with gains on major U.S. markets Tuesday, despite news of increases in wholesale prices and mortgage defaults.[52] The Nymex trading day ended at 5:15 p.m. New York time, and trading for April 15 began at 6 p.m. local time.[43]

The head of Brazil's National Petroleum Agency, Harold Lima, is in hot water after saying Monday that a new offshore discovery could hold 33 billion gallons of oil, four times as much as the Tupi offshore discovery announced in November.[3] Not for nothing was it that Petrobras, the Brazilian oil giant, rallied 8% Monday on news of a discovery despite only vague details about the oil field. "We're at 97% to 98% capacity and it's an industry whose production is subject to not only normal problems that any producer has but subject to a lot of geopolitical risk," says James L. Williams, energy economist at WTRG Economics, London, Arkansas.[40] Oil wells are drying up as fast as new ones can be drilled as seen in the plateau of oil production since 2005.[40]

"Traders have bought oil in response to lower interest rates and a weaker dollar," Cameron Hanover analyst Peter Beutel, told Thomson Financial news agency.[15] A weak dollar makes dollar-denominated assets like crude oil and gold cheaper to buyers holding other currencies.[34] The sky-high crude oil also boosted the appeal of investing in soybean and CPO, which can be converted to alternative energy source called biofuels.[34] The country's crude oil imports surged 25 percent in March, the Customs Administration said April 11.[16] The pipeline transports crude oil from Louisiana to Illinois and feeds BP's BP Whiting, Ind., refinery and a Marathon Oil MRO refinery in Catlettsburg, Ky. A Shell representative said the company does not know when it will be able to bring the pipeline back online.[51] "We are entering the strongest season for crude oil right now as refiners prepare for the driving season."[12]

Inflation-fearing investors may have found impetus to add oil positions after the Labour Department reported the producer-price index rose 1.1 per cent in March, after a 0.3 per cent increase in February. [9] If the oil and gas index falls 1 per cent, the DUG ETF gains about 2 per cent, and vice versa.[41]

Heating oil made much stronger gains, $8.41/bbl while reformulated blend stock for oxygenate blending (RBOB) was adding only $2.12/bbl. Natural gas was up 6.2%," he said.[47] For many investors, exchange-traded funds could make more sense than commodity futures or oil and gas stocks.[51] Commodity markets are smaller than the stock or bond markets, and even modest increases in volume can push up oil prices sharply.[27] The world oil price is a little like movie character Indiana Jones, oil conference delegates heard Monday morning -- no matter how many fundamental body blows it absorbs, it keeps climbing relentlessly higher. "Still, there is no sign of moderation in commodity prices, no sign of moderation of oil prices," he said in Calgary.[35]

The price of oil tends to rise when the value of the dollar falls because oil is denominated in dollars in international markets.[51] Weak dollar, supply disruptions boos oil, while stocks mixed ahead of key earnings reports.[33] Crude prices were also supported by reports of a number of supply disruptions.[33]

The record followed a government report that said prices at the wholesale level soared nearly 7 percent in the 12 months ended in March and that half the increase came from energy.[27] The Energy Information Administration has noted that gasoline demand is sluggish in the U.S., but that doesn't extend to the rest of the world. The expectation is for reduced driving in the U.S. this summer, but for now, that's only a forecast, and the price of gasoline remains extraordinarily high.[40] Gains in prices today received support from an increase in U.S. gasoline prices on Monday, analysts said.[1] If you're planning a driving vacation this year, try to schedule it for after Labor Day. Travel before then and it's possible you'll be paying the highest gasoline prices ever.[12] Prices normally rise in the spring as suppliers stock up in advance of peak summer driving season, and as refiners switch over from making winter grade gasoline to the more expensive, but less polluting, summer version of the fuel. As they perform this switch, refiners try to sell off all of their winter grade fuel, driving overall supplies down. This year, refiners are also facing short supplies of alkylate, a key ingredient in summer grade fuel.[11]

According to AAA, the average regular gallon of gasoline is $3.386, more than 50 cents higher than a year ago.[40] Mid- and high-grade gasoline averaged over $4 per gallon at California pumps.[26] According to a AAA survey, regular unleaded gasoline hit $3.386 a gallon, and diesel reached $4.119.[18] Front-month May reformulated gasoline blendstock, or RBOB, fell 29 points, or 0.1% to $2.8044 a gallon.[45]

Prices were highest in California, where mid-range and higher grades are now averaging more than $4 a gallon.[4] "And gas prices would have easily topped $4 by now, so lower gas demand is keeping a lid on gas prices," Dietz said.[37] Forecasts speculate gas prices will peak as high as $3.65 within a month.[1]

The contract yesterday gained $1.09, or 1 percent, to close at a record $109.84. [16] The CPO benchmark futures contract on Bursa Derivatives gained RM95, or 2.6%, yesterday to RM3,690 per tonne. The contract had gained 66% over the past one year, but was well off its record high of RM4,330 achieved on March 3.[34] The contract closed at a record US$113.79 a barrel Tuesday, and then jumped in after-hours trading to an all-time high of US$114.08.[33] By midafternoon in Singapore, the contract had retreated to US$112.16 a barrel, up 40 cents from Mondays record close of US$111.76 a barrel.[31]

Natural gas futures gained 6.7 cents to US$10.12 per 1,000 cubic feet. [31] May corn on the Chicago Board of Trade was up 14 cents to $6.06 per bushel while CBOT May soybeans added 12 cents to $13.85 per bushel and May wheat gained 10 cents to $9.06 per bushel.[21] June gold added $4 to $932.70 per troy ounce in early afternoon trade, while ay silver was up 4 cents to $17.83 per troy ounce and July platinum jumped $33.50 to $2,015.[21]

Schlumberger Ltd. fell 37 cents to $90.82, and Baker Hughes Inc. rose 93 cents to $74.[30] Cameron International Corp. rose 31 cents to $47.48, and Halliburton Co. rose 11 cents to $44.20.[30]

Against the euro, the dollar traded at $1.5831 at 5:59 a.m. in Tokyo, after declining 0.2 percent yesterday. [43] The euro hit an all-time high against the dollar last Thursday. Traders are also trying to get ahead of rising demand for crude as refineries finish their maintenance cycles and begin gearing up for fuel production over the next few months, Schork said.[18] Crude was also supported by news of disruptions to crude supplies, though analysts said the disruptions were minor. "They only look like temporary shut downs but. the combination of that and the fact that the dollar was off again was the key," Pervan said.[31] The Group of Seven industrialized nations raised concerns about the dollars fall in a statement on Friday, a warning some analysts see as a sign the G7 may be contemplating an intervention that could lessen crudes attraction as an inflation hedge and send it lower.[42]

Royal Dutch Shell Plc workers are repairing the 1.1 million-barrel-a-day Capline system in Tennessee, shut April 11 after the discovery of a leak. "Oil's holding up as the big funds aren't willing to liquidate positions until they see what's happening with the dollar,'' said Andrey Kryuchekov, an analyst at Sucden (U.K.)[14] "Even though the U.S. is in recession, analysts have underestimated the voracious demand for oil from emerging markets," Young says.[27] The U.S. needs more domestic supply. Even though President Bush has called for ANWAR drilling every year since 2000, Democrats in the Senate have always managed to block it, their hatred for the oil companies blinding them to the interests of the American people.[40] Surprisingly, traders are not taking into account Monday's news that Brazilian oil company Petrobras ( PZE ) may have made the largest oil discovery in 30 years.[18] Environmental Capital collects and analyzes news in everything from oil to gas, from ethanol to wind power.[40]

When the dollar rises, though, the effect tends to reverse as oil also becomes more expensive to investors overseas.[42] Many Canadian investors are looking at the dip of the U.S. dollar as a great time to buy.[17] Traders said investors were increasingly turning towards commodities as a hedge against the sinking U.S. dollar.[34]

The Canadian dollar continued to hold its own against the U.S. dollar Tuesday despite falling against the greenback in early-morning overseas trading.[17]

The dollar also slid against the euro despite stronger-than-expected U.S. retail and food sales data released Monday.[45] Bloomberg quoted David Moore, commodity strategist at Commonwealth Bank in Sydney, as saying that as the dollar weakens, oil becomes cheaper in terms of the euro. "This encourages buying, so there may be some people who view oil as a hedge against dollar weakness," Moore said.[39]

From here you can use the Social Web links to save Oil at record high on supply headaches to a social bookmarking site.[9] Artyom Konchin, an analyst with Aton Capital, put Russia's oil supply lull down to high taxes and insufficient reinvestment into infrastructure that could increase production from existing fields. "It's not that we don't have enough oil," he said.[6] Italy's Eni SpA, which operates the facility, said the sabotage resulted in a daily production loss of about 5,000 barrels. While all of these outages are in themselves relatively minor, the fact that the incidents have so closely followed one another is stoking supply fears among investors already spooked by current inventory levels.[49]

March U.S. producer price data and the April Empire State manufacturing survey are set to be released later on Tuesday, while March inflation and industrial production figures are due on Wednesday.[49] With too low short term interest rates (and the Fed Chair having gone directly from the White House to the Fed, so much for Fed independence) the U.S. stands the risk of having a major recession without a significant break in commodity prices. Short rates should be raised to break commodity speculation but Hank and Ben would much rather protect their five percent constituency rather than consider the other 95%this administration has Royalist tendencies while the rest of us eat cakewe operate monetary policy like a third world nation.[40] Prices for food and fuel mount inside and outside the U.S., fears of a global food crisis loom as some farmers c.[33] Any sign that the U.S. economy is doing less badly than expected could send prices higher, analysts said.[49] Published: April 15, 2008 at 1:25 PM Three food ingredient producers have petitioned the U.S. Commerce Department to look at importers they contend are selling citric acid at unfair prices.[52] Published: April 15, 2008 at 2:07 PM Aging airline fleets and the higher maintenance costs associated with them are plaguing U.S. airlines just as fuel costs are surging, industry analysts said.[52]

Published: April 15, 2008 at 12:15 PM House prices in Britain are falling at a rate not seen for 30 years, an industry study showed Tuesday.[52]

Producers' prices in March were up 6.9 percent from a year earlier, and about half the increase came from higher energy costs.[27] Core producer prices, which are stripped of the volatile food and energy components, grew 0.2 percent.[27]

PetroChina Co. will buy 50 percent more diesel fuel in May than in April as the country's economy may have expanded 10.4 percent in the first quarter. "This move we've seen for the past week is an investment- flow move,'' said Jonathan Kornafel, a director for Asia at Hudson Capital Energy in Singapore. "What the East is doing, these developing nations, completely eclipses any slight demand drops in the West.''[7] Gasoline pump prices rose last week, but so did demand, according to a weekly survey by MasterCard SpendingPulse.[3] "There's no gasoline demand to speak of right now, otherwise there would be a big reaction to the Capline shutdown," Addison Armstrong, director of market research at TFS Energy LLC in Stamford, Connecticut, was quoted saying in the news report.[15] NEW YORK -- Following is a summary of top stories in the energy sector Tuesday afternoon.[3] There was one positive economic report. The New York Federal Reserve says regional manufacturing activity expanded this month, defying predictions for a contraction.[44]

U.S. crude-oil supplies probably gained last week amid speculation imports rose, a Bloomberg News survey indicated. [16] China's gross domestic product rose 10.4 percent in the first quarter from a year earlier, according to the median estimate of 24 economists surveyed by Bloomberg News, after expanding 11.2 percent in the previous three months.[16]

Dalian Petrochemical Co. is a subsidiary of China National Petroleum Corporation (CNPC). It will become China'''s biggest oil refining base this year as.[2]

While the leak's impact appeared fleeting, it was enough to add momentum to an oil market that made fresh records last week.[25] Diesel prices at the pump jumped to 4.119 dollars, also a record, setting the stage for higher prices on food and other goods transported by truck, ship and rail.[28] Historically demand has risen significantly then, but with pump prices at record highs, demand could soften.[3] OPEC argued that while high prices and slowing economies would affect demand in major industrialised countries, appetite for crude would remain robust elsewhere.[20] Why the disconnect? Many investors don't believe the price of crude will stay at current levels.[41]

A weak U.S. currency encourages demand for dollar-priced crude because it becomes more affordable for foreign buyers.[19] U.S. energy stockpiles showed an unexpectedly sharp decline in the week ended April 4, according to a report by the U.S. Department of Energy (DoE).[46]

Meanwhile reports also emerged of minor supply outages in Nigeria, Africa's biggest oil producer, after rebels caused a fire at the Beniboye oil plants in the Delta State.[49]

Producers raise prices to compensate for the lower value of the dollar. All of these forces have been in place for some time. [27] Edward Meir, energy analyst at MF Global, wrote in a research note that "net length is still far below record levels, suggesting that long accumulation is proceeding at a hesitant clip at best."[51]

SOURCES

1. Crude Hits Record Above $113 on Falling Dollar, Supply Trouble | IBT Commodities & Futures
2. OilVoice | Shell Blamed for Rising Oil Price
3. Energy Sector Roundup: Oil climbs close to $114 a barrel | Chron.com - Houston Chronicle
4. ABC News: Oil Sets New High Near $114 a Barrel
5. Oil prices reach record $113 a barrel
6. The Associated Press: Oil Pushes to New High Above $113
7. Bloomberg.com: Worldwide
8. Crude sets a new high - International Herald Tribune
9. Oil at record high on supply headaches | The Australian
10. 21 News Now, More Local News for Youngstown, Ohio - Oil sets new high above $113
11. The Associated Press: Gas Prices Could Pass $3.50 in Weeks
12. Gas prices higher than ever, could drop in late summer | democratandchronicle.com | Democrat and Chronicle
13. Crude rises 1.5% on dollar weakness, consumer data - MarketWatch
14. Bloomberg.com: India & Pakistan
15. Oil Prices Jump Above $111 On Supply Disruption Fears, Weak Dollar | April 16, 2008 | AHN
16. Bloomberg.com: Worldwide
17. Ottawa Business Journal - Home Page
18. Crude jumps to new trading high as dollar weakens - Apr. 15, 2008
19. Manila Bulletin Online
20. RT' Business: Russian warning as oil hits new peak
21. Most commodities follow crude oil higher
22. Bloomberg.com: Latin America
23. NIGERIAN TRIBUNE - News
24. Business - Asian oil prices soar above $112 - INQUIRER.net
25. Oil prices settle at new high | The Australian
26. WTI at new record near $114 per barrel
27. Rising oil pushes up wholesale prices | clarionledger.com | The Clarion-Ledger
28. Crude-oil sets new record_English_Xinhua
29. News10.net - Crude Oil Near $114 a Barrel
30. Sector Snap: Oilfield service company stocks mixed | Chron.com - Houston Chronicle
31. Oil prices rise to intraday record at mid-US$112 on US dollar, supply concerns - International Herald Tribune
32. The Associated Press: Oil Prices Back Above $111
33. Oil prices steady above US$113 a barrel after rising to record overnight - International Herald Tribune
34. Crude oil reaches new high of US$113
35. Oil's'super-spike' hits new high
36. Oil service stocks jump as crude futures top $111-mark
37. Oil surges to record $113.66 on Mexico, Nigeria disruptions, Chinese demand - BloggingStocks
38. Bloomberg.com: Worldwide
39. Crude Oil Hits New Record High: $112 A Barrel | April 16, 2008 | AHN
40. MarketBeat Blog - WSJ.com : Five Reasons: Why Oil Isn't Coming Down'Yet
41. reportonbusiness.com: Soaring commodity prices offering little fuel to energy stocks
42. Crude futures hit record settlement price amid dollar, supply concerns - International Herald Tribune
43. Bloomberg.com: India & Pakistan
44. 21 News Now, More Local News for Youngstown, Ohio - Stocks notch positive close
45. OIL FUTURES: Nymex Crude Rises On Supply Woes, Dollar
46. Oil prices touch record highs in Asian trade - UPDATE 2 - Forbes.com
47. MARKET WATCH: Crude price flat in mixed market - Oil & Gas Journal
48. Oil surges to new record of $113.93 - MarketWatch
49. Oil hits fresh highs as weak dollar, supply fears add to buying momentum UPDATE - Forbes.com
50. WBOC-TV 16, Delmarvas News Leader, FOX 21 - Crude, gasoline hit new highs
51. Pipeline Setback Gives Oil a Lift | Energy | BP COP HES MRO RDS.A XOM - TheStreet.com
52. United Press International - NewsTrack - Business
53. WAVY TV 10 - News, Weather, Traffic, Sports for Hampton Roads, Virginia - North Eastern North Carolina - Business Minute: Stocks end higher. Crude record. Intel earnings

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