Crude Oil Reaches $64.27 Amid Refinery, Middle East Concerns

[bemildred]

Yippee! Bring it on! Are we getting even half the oil out of Iraq that we were before we invaded? Can we admit now that a portion of the current shortages is due to the Iraq mess?

Aug. 9 (Bloomberg) -- Crude oil futures rose to a record $64.27 a barrel in New York after Valero Energy Corp. the third- largest U.S. refiner, said a fire at its McKee plant in Texas will cut gasoline production for five days.

The fire, which will cut daily gasoline output by 50,000 barrels, is the latest in a series of refinery breakdowns that helped push gasoline to a record yesterday. Threats of terrorist attacks in Saudi Arabia and the resumption of Iran's nuclear program heightened concerns about Middle East oil supplies and yesterday pushed crude oil above $64 for first time.

``There's been no let up in demand for gasoline,'' said Chris Mennis, owner of oil trader new Wave Energy in Aptos, California. ``The way they're having to run the refineries makes them prone to breakdowns.''

Crude oil for September delivery rose as much as 33 cents, or 0.5 percent, to $64.27 in after-hours electronic trading on the New York Mercantile Exchange. The contract traded at $64.19 at 9:18 a.m. Sydney time. It jumped 35 cents in 30 minutes to $64.25 after the Valero announcement.

Bloomberg

[Inland]

1. Mission accomplished! nt

[Democracy White]

2. $2.55 a gal here in GR

Two dollars and fucking fifty five cents!

This is getting ludicrious

Dee

[Yo_Mama_Been_Loggin]

3. It's not all bad

The oil companies are making record profits and will be making more thanks to the recently signed energy bill

:sarcasm:

[Massacure]

4. It would be a good idea to fill up tonight.

Gasoline prices will probably jump a dime first thing tommorow morning.

[KeepItReal]

5. We are gonna blow through $3.00/gallon (Premium) here in L.A. in a minute

It is already $2.80 - $2.90 per gallon for premium.

Once it breaks $3.00 all the other grades will get dragged over $3, also.

[The_Casual_Observer]

6. 2 months ago the "experts" were predicting $30 on weak demand!

Looks like the $70 price is well within range this month. That is the price that is supposed to knock the economy on it's ass.

[AlGore-08.com]

7. Smirk just "jaw boned" with the Saudis and drove prices back down

Just like he promised he could do in the 2000 debates!

:sarcasm:

[Canuckistanian]

8. If Barney gets trapped in the armadillo hole again....

... oil prices will go up $2/barrel. The excuses don't matter.

It's the demand, stupid. And our vaunted "capitalist" system says that increase in demand=higher costs.

Cheap gas is a memory now, something you can tell your grandkids about as you pedal to the store to get candles.