Oil closed at a record $143.57 on Wednesday.
Oil closed at a record $143.57 on Wednesday.
International Energy Agency head Nobuo Tanaka states that the world is in the grip of an "oil shock."
In its annual Medium Term Report, EIA said the world's estimated daily oil needs would rise from 86.87 million barrels this year to 94.14 million barrels in 2013. This is less than it anticipated in its 2007 report due to record high prices.
"We are clearly in the third oil price shock," declared Tanaka,
comparing the effects of pricey petroleum now to periods of soaring
prices in the 1970s and 1980s.
continued..........
OPEC's Secretary General Abdalla Salem el-Badri states that an interest rate increase by the US Federal Reserve would strengthen the US Dollar,rein in speculation, and possibly push oil prices under one hundred dollars per barrel.
"People will go and invest somewhere else," if the Fed opted to raise rates, el-Badri said. "I'm sure the price will come down," he added, sanguine about the pace and degree of any downturn in prices.
"We don't prefer $137 (a barrel) today and $10 tomorrow. Whether it's $80, $ 90, $110, whatever, that price should reflect supply and demand fundamentals," el-Badri said. continued.......
Qatar's oil minister states that the country will not follow Saudi Arabia's lead in increasing oil production, claiming that supplies are adequate.
``I never heard any panic about a shortage of supply, just about the high price,'' Abdullah bin Hamad al-Attiyah told Bloomberg in an interview in Madrid. ``We see in the market there are lots of cargoes.''
Qatar joins United Arab Emirates and Kuwait as OPEC members who are balking at increasing crude oil production.
OPEC
President Chakib Khelil states that oil may reach $170 in 2008 due to a weak dollar and increasing demand.
continued.....
Obama Plans To Levy Fees On Idle Oil Leases
"If that compels them to drill, we'll get more oil," Sen. Obama said.
"If it doesn't, the fees will go toward more investment in renewable
sources of energy."
continued.......
Canadian Activists Target Uranium Industry
The Community Coalition Against Mining Uranium is demanding that uranium exploration be suspended in Ontario until its impact on health,
the environment and aboriginal land rights is properly addressed.
continued.......
Evergreen Solar Plans To Sell $300 Million In Convertible Notes
Evergreen Solar Inc. (NASDAQ ESLR) said Wednesday it plans to sell $300 million of senior convertible notes due 2013. ESLR expects to grant the offering's underwriters a 30-day option to buy up to an additional $45 million of notes to the extent the underwriters sell more than $300 million of notes in the offering. continued.........
Barack Obama is set to announce his plan to target the oil industry for further government regulation and oversight.
Obama vows to close the so-called "Enron Loophole" in an effort to curtail speculation in the energy markets.
The "Enron Loophole" refers to a section of
the “Commodities Futures Modernization Act of 2000 [CFMA]” which was signed into law by President Clinton. The "loophole" exempts certain energy traders from regulations governing other commodities.
continued.........
Oil Hits $137 Following Nigerian Attack
Shell shut down production at a major offshore oil facility in Nigeria due to a militant attack.
"We shut down production at the Bonga oilfield following an attack by unknown militants this morning," said Shell spokesman Precious Okolobo.
Oil production in the southern Delta region of Nigeria has declined by 25% since January 2006 due to attacks by militant factions.
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Denial Of Market Fundamentals Leads To Speculator Blame Game
Francisco Blanch, head of global commodities research at Merrill Lynch in London, said he found no link between speculative activity and systematic price increases in commodities.
"So far the available data doesn't support the idea that speculators are driving prices up: quite the contrary," Blanch said. "We are in a stage of denial with regards to inflation."
Rep. Maurice Hinchey (D-NY), member of the House Appropriations Committee...."We (the government) should own the refineries. Then we can control how much gets out into the market."
Additional rhetoric from House Democrats
"The White House has become a ventriloquist for the oil and gas energy. The finger should be directed back at them. They had plenty of opportunity to (arrange an energy policy). But they did not put an energy policy in place." Rep. Ed Markey (D-MA), chairman of the House Select Committee on Global Warming
"What we do has to be in the interest of the American people. Not major corporations." Rep. Rahm Emanuel (D-IL)
No oil bashing session is complete without......
"You cannot drill your way out of this."
Rep. Ed Markey (D-MA), chairman of the House Select Committee on Global Warming
President Bush Urges Congress To Lift Ban On Offshore Drilling
Amid a climate of $4+ gasoline, President Bush states that "Families across the country are looking to Washington for a response,". Bush stated that offshore drilling could produce over 18 billion barrels of crude oil.
continued......
Gasoline Inventories Decline
The Energy Department reports that gasoline supplies fell 1.2 million barrels last week. Analysts were forecasting an increase of 1 million barrels.
Crude oil is currently trading down 15 cents at $133.86 a barrel.
Saudi Arabia Signals Increased Oil Production
Crude oil fell from a record on signs that Saudi Arabia will increase production to stabilize prices.......Saudi Arabia will produce 9.7 million barrels of oil a day next month, an increase of 200,000 barrels from June.
McCain Proposes Increased Domestic Energy Production
U.S. Sen. John McCain, R-Ariz., said Monday he wants to lift federal restrictions and moratoriums on oil drilling and domestic energy exploration.
Cameco Proposes New Uranium Mines
Cameco (NYSE CCJ) seeks to mine 25 kilometres south of Alice Springs.
