Oil Prices Jump by Over $3 Amid Mid-East Unrest
- Posted on January 28, 2011 at 2:36pm by
Jonathon M. Seidl
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(AP) — Oil prices surged Friday as thousands continued to riot against the government in Egypt, and unrest threatened to spread across the Middle East.
Benchmark oil rose $3.12, or 3.6 percent, to $88.76 a barrel in afternoon trading on the New York Mercantile Exchange. Prices shot up about $2 a barrel in less than half an hour at midday after the White House expressed its concern about the violence in Egypt.
Anxious traders pulled money from other assets to buy oil, gold and the dollar, which are considered safer risks during uncertain times.
“This is definitely a flight into safety,” said Rich Ilczyszyn, a senior market strategist with futures brokers Lind-Waldock.
The uprising in Egypt follows protests this month that forced out the president of Tunisia, who fled to Saudi Arabia. Anti-government protests have also rocked Lebanon and Yemen.
“I think it’s just kind of the feeling that this could continue to spread, or just the whole nervousness about the region, not that there’s any specific cutoff of supplies or anything like that,” said Tom Bentz, an analyst at BNP Paribas Commodity Futures.
Bentz said a lot will depend on what happens over the next few days. “Are we going to see a regime change? Are we looking at cutoffs of supplies? I think it’s just one of those things you have to watch closely,” he said.
Oil prices started to rise earlier Friday after the Commerce Department said the economy got stronger at the end of last year as Americans spent at the fastest pace in four years and U.S. companies sold more overseas. In 2010 the economy grew 2.9 percent, the most since 2005.
Gas pump prices have been on hold this week as oil prices leveled off and then fell below $86 a barrel before Friday’s rise. The national average for regular gasoline is $3.10 a gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s 1.7 cents less than a week ago but still 41 cents more than a year ago.
Americans already have started watching their budgets and adjusting their spending as gas prices stay above $3 a gallon. Analysts are concerned that lingering high prices will force consumers to take more steps to conserve, which would affect the economic recovery.
In other Nymex trading in March contracts, heating oil gained 4 cents at $2.6983 a gallon, gasoline added 7 cents at $2.4807 a gallon and natural gas fell picked up a penny $4.330 per 1,000 cubic feet.
In London, Brent crude added $2 at $99.39 a barrel on the ICE Futures exchange.
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dobrze
Posted on January 29, 2011 at 7:45pmWhy is Barack Hussein Obama giving 2 billion to Brazil to help them drill for oil offshore? What’s wrong with helping our own country.
Report Post »hempstead1944
Posted on January 29, 2011 at 9:04amNever let a crisis go to waste……the oil traders have learned well……
Report Post »reform
Posted on January 29, 2011 at 8:05amPlanned i’d say for 30 years nothing to this degree now that America is at the brink, the fat cats say bring it on??? Write congress and demand we start drilling here and have refining to boot as well there is enough oil here for they say 200-300 years. Why are we being lied to?
Report Post »Eblaze44
Posted on January 29, 2011 at 2:58amand Barak still can’t see that we better begin to depend on our own resources. Better get to extracting from the huge western tract of oil and sticking those pipes dowm in OUR Gulf waters and pumping our on oil using American Oil Companies – not foreign owned or controlled companies
Report Post »roast
Posted on January 28, 2011 at 9:59pmone(there are many more) terminal in georgia. distributes 1 million gallions a day.Federal gas tax 18.4 cents a gallon Feds make $184000 a day off that one terminal a day. 365 days a year.State tax 14.4 cents a gallon state makes $144000 a day.Do the math. Fed and state making a fortune off the people pumping fuel.375 million gallons a day sold in the us.$53,280,000 taxs federal(one day)$19,980,000,000 a year federal They still tax there profits and employees wages.Property,trucks.
Report Post »dontbotherme
Posted on January 28, 2011 at 8:50pmOh gee. My censored comment came back. It says my comment is awaiting moderation. No swear words, nothing offensive I think). Whatever.
Report Post »dontbotherme
Posted on January 28, 2011 at 8:48pmHmmm… I was censored & deleted. All righty then.
Report Post »dontbotherme
Posted on January 28, 2011 at 8:35pmIf the Suez canal is closed we are screwed. We the people are going to have demand drilling in our own country. We have more power than we realize.
Report Post »ADNIL
Posted on January 28, 2011 at 7:57pmOil, Shmoil. You can”t drink it, or eat it. We are being prepared for prohibitively high prices comming to a gas station near you soon. While POTUS is busy patting himself on the back for saving the economy, and the Rights and the Lefts are busy pointing fingers at each other, (and sticking their thumbs where the sun doesn’t shine) we are circling the drain.
Report Post »It is only January and there is plenty of time to plan on planting a garden. Buy some non-hybrid seeds, get some hand tools and a small soil tiller. The little bit of gas you will be able to afford will go a long way in one of these. During the great depression, those who were able to plant gardens fared a lot better than those who did not. Trust me on this one.
dizzyinthedark
Posted on January 29, 2011 at 6:48amPOTUS is patting himself on the back? I don’t think so, rather he is planning his next vacation while FLOTUS is eating chocolate covered cheetos!
Report Post »ChiefGeorge
Posted on January 28, 2011 at 7:23pmThey need to break us and this is a two-fer! Oil Oil Oil! It is the main reason we have edged closer to the Gulf region in the last 31 years. Its all about who controls the oil reserves. Saudi Kingdom is next. They are just as repressive and must go. This NWO is looking better and better each day to them and they can just taste it. Get rid of sovereign US by breaking their economy, heck with what they owe because they knew all along it doesn’t matter how much we spend, they made it look good to our people so they could keep a lid on things for awhile longer to accomplish their overseas goals regarding the middle east. Everybody is getting played here and some said oil was going over $100 this year and maybe to 150 before its all over for the Western countries. Wait to the unemployed can’t afford to buy gas let alone food on the Gov checks they are getting. Just wait. Then its our turn if WWIII is not upon us by that point.
Report Post »Pyx
Posted on January 28, 2011 at 6:53pmObama still has in place the Gulf Oil Drilling Moratorium. ZEROs timing seems fortuitous for the LEFT.
Report Post »docgreen
Posted on January 28, 2011 at 6:48pmAnyone think that Obama is drooling, why you ask? Well the first thing is, he’s wanted to collapse the US economy to be able to move into his new position as the New World Order leader! “Obama will be the New World Order Leader” per Henry Kissinger!… This Egypt fiasco, is just one more nail in our coffin! So, what happens when Oil hits 150.00 a barrel? What do we think that will do to our Great Economy? Collapse it, if we go the rest of the World collapses! Here we Go Boys and Girls! I hope we all listened to Glen and stocked up on food Suplies!
Report Post »integrican
Posted on January 28, 2011 at 6:36pmI say, responsibly drill for our own oil and N-gas. ON-SHORE!!!!
Report Post »We have more oil and gas under the USA than the Middle East ever had……period.
The job creation would be phenominal. The cheaper gas and oil would turbo-charge our economy.
Onshore drilling is safer and mishaps are easier to deal with.
We could even set aside a percentage of the proceeds for alt-energy research so they could find something viable within 20 years …then we could go with that.
HEY GREENIE WEENIE……put this apple on your head…I want try something!!!!
GEETAR
Posted on January 28, 2011 at 9:30pmhey integrican you should run for president in 2012
Report Post »CatB
Posted on January 28, 2011 at 6:30pmI would respond .. again … but the first was censored / deleted.
Report Post »momsense
Posted on January 28, 2011 at 6:21pmAnyone who thinks that the possibility of $5/gal gas prices isn’t thinking clearly. All the belame for this should be on the EPA. They’re the ones who think a 2 inch fish, a wild flower preserve, beetle infestations and other such things are more important that providing for your family. All they ever do is come up with ways to limit the welfare of humans.
Report Post »docgreen
Posted on January 28, 2011 at 6:13pmIt just went up two dollars a barrel within a half hour! If thats the case, it is going to skyrocket our gas prices!
Report Post »docgreen
Posted on January 28, 2011 at 6:07pmWell, I guess its started allready! Go fill your Tank Up!
Report Post »Accountability
Posted on January 28, 2011 at 5:59pmPerhaps a strong leader might open up new opportunities for the extraction of domestic oil? Should the price we pay for oil be determined by the instabilities of the Arab world? Perhaps we should even look into getting some return from Iraq for our investment in their future?
Report Post »Pragmatica
Posted on January 28, 2011 at 6:16pmThere is domestic production taking place and ramping up! Look into the Niobrara shale and the Bakken areas up North. The North Dakota legislature voted to protect and expand the oil industry in their state, and production is on the horizon. Exciting things are happening and I hope we continue to expand domestic production. Foreign oil is bad for America on many levels.
Report Post »ANTISOCIAL-IST
Posted on January 28, 2011 at 6:19pmwhy not? we’ve been accused for years of being there for the oil anyway.
Report Post »trueblueday
Posted on January 28, 2011 at 8:27pmSo if the “opportunities” open up N in our country, we are already losing the big rigs down S in the Gulf – So I guess the negatives will balance out the positives which still leaves us with a net gain of ZIP.
Report Post »EP46
Posted on January 28, 2011 at 5:57pmForget about gas…the real concern here is why our government did not get all Americans out before now. If the Muslims take control there could be another hostage situation like with Jimmy Carter and the Muslims will move into the Gaza Strip and start war with Israel. Pray for our people in Egypt and pray for Israel.
Report Post »flagbearer
Posted on January 28, 2011 at 5:56pmDrill baby, drill.
Report Post »awiderview
Posted on January 28, 2011 at 5:54pmOil was down all week…so it’s up only about 25 cents for the week…so, I’m not so sure you need to stock up on oil yet. But are you at least buying gold and guns? You need to patronize the advertizers here!
Report Post »ANTISOCIAL-IST
Posted on January 28, 2011 at 6:17pmwhy does your “wider view” always sound like the same old drivel?
Report Post »awiderview
Posted on January 28, 2011 at 6:59pm@antisocial-ist
Report Post »Does my drivel stand out? I’m sorry, I just can’t believe people can be so narrow (and paranoid)…I wonder who they are…and then I just write things to see what kind of response I get.
kentuckypatriot
Posted on January 28, 2011 at 5:51pm$5.00 gas here it comes. I say BS! We need to get out of OPEC and fast.
Report Post »pamela kay
Posted on January 28, 2011 at 5:49pmThis is exactly what the progressives want and need to continue with their plot to destroy America. Leaving us helpless and further crippled as a nation.
Report Post »docgreen
Posted on January 28, 2011 at 6:22pmAnyone think that Obama is drooling, why you ask? Well the first thing is, he’s wanted to collapse the US economy to be able to move into his new position as the New World Order leader! “Obama will be the New World Order Leader” per Henry Kissinger!… This Egypt fiasco, is just one more nail in our coffin! So, what happens when Oil hits 150.00 a barrel? What do we think that will do to our Great Economy? Collapse it, if we go the rest of the World collapses! Here we Go Boys and Girls! I hope we all listened to Glen and stocked up on food Suplies!
Report Post »hempstead1944
Posted on January 28, 2011 at 5:33pmDo not worry…..they will continue to rise…..this is only the beginning……
Report Post »Dustyluv
Posted on January 28, 2011 at 5:35pmPfffffffffffffffffffftttttttttttttttttt!!! Chump change. Just wait. You will pay 10 bucks a gallon soon and think its a deal…
Report Post »Hang on boys and girls, they are closing the Suez Canal…
Cobra Blue
Posted on January 28, 2011 at 7:31pmWe will have $5.00 gas by the end of the year….Better store up a few gallons. Change is coming real fast..
Report Post »grandmaof5
Posted on January 28, 2011 at 8:42pmBet Spooky Dude bought low.
Report Post »GEETAR
Posted on January 28, 2011 at 9:17pmlets not drill our own oil from south dakota at 16.00 a barrel. Every time the middle east is pi$$ed off we gotta pay. I really dont get it
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