2:30 pm: Oil sets new trading record above $147 a barrel
NEW YORK (AP) _ Oil prices briefly spiked to a new record above $147 a barrel Friday, as rising hostilities between the West and Iran and unrest in Nigeria sent investors rushing back to energy markets.
A decline in the U.S. dollar and concerns about an oil worker strike in Brazil contributed to the higher price.
The resurgence in crude prices stokes concern that $4-a-gallon gasoline is here to stay for U.S. drivers and means home heating could get much more expensive this winter.
Heating oil futures surged on the New York Mercantile Exchange to a record of more than $4.15 a gallon. Natural gas futures turned lower, but are still about twice as high as a year ago.
"If you think your gasoline bills are expensive now, wait till you get your home heating bill this winter," said Stephen Schork, an analyst and trader in Villanova, Pa.
While U.S. consumer demand for gasoline is waning as people try to save money, other factors are keeping energy costs high: The weak dollar, refineries cutting back on production and resilient demand for diesel fuel. Diesel is a distillate fuel produced and distributed similarly to heating oil, so diesel demand often affects the price of heating oil.
The other big reason gasoline and heating bills are likely to stay high is unrest in the Middle East and Africa.
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warrenguy
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07-12-08 11:08 AM
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if we had a true leader he would tell them to get over this crap and lower the price of oil I know that Reagan would have
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warrenguy
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07-12-08 11:06 AM
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to all of you who have voted for Bush & Chaney and continue to render your support to them I hope that you are not that naieve as you are the one's who have absolutely no right to complain of high gas prices
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cortlandmom
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07-11-08 4:50 PM
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EXCUSES, EXCUSES!!!!!!!!!!!! THERE HAS BEEN TROUBLE IN THE MIDDLE EAST LONGER THAN THERE HAS BEEN OIL FOR SALE. WHAT NEXT??????? I SEE PIONEER DAYS AHEAD.
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pahootaman
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07-11-08 4:28 PM
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what I ment to say was "A white house that feels that sabre rattling against volital oil producing states probably isn't seen by too many friendly eyes when it comes to lowering the price per barrel"
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gpandas
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07-11-08 4:27 PM
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i'm not paranoid, they're out to get me!
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pahootaman
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07-11-08 4:26 PM
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Never believe for a second it's because of large SUVs and trucks that have low gas milage that they are to blame for the 5 fold increase in fuel prices since 2000. I don't see a five fold increase of SUVs on the raod. A white house that feels that sabre rattling against volital oil producing state. I'm suprised that occupying the second largest deposit of oil in the world with the worlds largest christian* based military in the most muslim part of the world hasn't been given that much thought either. *Not that I'm saying that our military is a bunch of christian freedom fighters or anything, just saying that America is seen as a "christian nation", so by extention, our military would be seen as "christian" by some cultures.
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