"What this shows is that demand destruction in the US is a lot larger than previously thought. There are more signs demand is deteriorating." -- Phil Flynn, an analyst at Alaron Trading Corp. in Chicago."
"Crude expected to continue climb" By Associated Press | July 1, 2008
NEW YORK - The price of crude oil hit yet another record on the last day of a tumultuous first half, spurting past $143 a barrel before ending lower on demand fears and a resilient dollar. Crude has shot up nearly 50 percent since the start of the year, in large part on the dollar's troubles, and analysts expect that trend to remain intact as the second half of 2008 begins.
A government report lowering oil and gasoline demand estimates and a dollar hanging tough nullified investor concerns over supply, a fragile global economy, and continued tensions in the Middle East.
"What this shows is that demand destruction in the US is a lot larger than previously thought," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. "There are more signs demand is deteriorating."
Meanwhile, retail gasoline, which has been tracking oil higher, reached a national average of $4.09 a gallon, according to a survey by AAA, the Oil Price Information Service, and Wright Express. The previous record of $4.08 was set June 16
Massachusetts gas prices, however, remained unchanged from last week. AAA Southern New England said a gallon of self-serve, regular unleaded averaged $4.06 in Massachusetts, the same price as the last two weeks.
--MORE--"
Translation: COOL OFF, Americans!
Ever notice how much like a yo-yo the oil companies play the American people?
Good thing those Iraqi fields will be coming on line, huh?
BAGHDAD - Iraq opened international bidding for eight enormous oil and gas fields, paving the way for major investments in a nation with one of the world's largest petroleum reserves.
If the contracts are approved, they could mark the biggest foreign stake in Iraq since the industry was nationalized more than 30 years ago.
That could be good news with the price of oil breaching $143 for the first time ever yesterday, but there are concerns that a dominant role for Western firms such as Shell, BP, Exxon Mobil, and Total could feed perceptions that US-led forces toppled Saddam Hussein to grab the country's natural resources.
No!!!!! Ya think?
The introduction of 1.5 million barrels of oil each day would likely be enough to move the price for a barrel downward, but analysts are not convinced that it is realistic -given the deterioration of the Iraq's infrastructure and potential instability.
With fuel prices at record levels, foreign firms have been anxious to tap Iraq's estimated 115 billion barrels of oil reserves and 112 trillion cubic feet of natural gas. The revenue would help the Iraqi government rebuild infrastructure and deliver services to its people.
--MORE--"
And make western oil companies rich -- not like that is there motivation or anything.
And what do you mean deliver services to Iraqis?
Ain't they getting that now?
