Oil over $68 per barrel on Iran Tensions
By: Lowell
Published On: 4/10/2006 11:38:00 AM
Prices for light, sweet crude oil ("West Texas Intermediate") climbed over $68 per barrel in New York this morning on escalating tensions between the United States and its European allies on the one hand, and Iran on the other. Specifically, markets are reacting to an article in the New Yorker magazine by Seymour Hersch that strongly indicates U.S. airstrikes against Iran's nuclear program are being planned. Analysts are now warning that crude oil prices could hit $80 per barrel, while the Wall Street Journal believes that oil and gasoline prices are heading up due to strong economic growth, constrained crude oil supplies, and problems with oil refining capacity and the U.S. switch away from MTBE as an additive in summer gasoline.
In other oil news, concerns continue regarding the ability of Nigerian rebels to disrupt oil production in that country. And, as Howling Latina points out, things are "getting really ugly" between the United States and Venezuela, which produces about 2.8 million barrels per day of oil and exports over 1.5 million barrels per day to the United States.
Finally, The Lundberg Survey reports that gasoline prices surged 17 cents per gallon, to a nationwide average of $2.67 per gallon, over the past two weeks. According to Lundberg, "[s]ince Feb. 24, the average price of a gallon of self-serve unleaded has risen 42 cents."
Comments