...They should be giving away cars...
Gasoline prices keep climbing for Metro AtlantansExpect to pay more for Memorial Day weekend drivesBy STAFF REPORTPublished on: 05/18/08
Metro Atlanta gas prices are nearing the $3.80 mark as crude oil prices continue their upward march.
Sunday's average for regular in the metro area was nearly $3.79 per gallon, which tracks motorist reports.
RELATED: • •
That's up from $3.66 one week ago and $3.42 one month ago.
Crude oil jumped $2.17 on Friday to another record close of $126.29, despite news that Saudi Arabia had boosted its oil output by 300,000 barrels a day and U.S. government plans to stop adding to the Strategic Petroleum Reserve.
Both moves were designed to allay concerns about an overheated oil market that's squeezing motorists and inflating the prices of all sorts of goods.
Neither appeared to have any effect on the markets, however.
The reason for the disconnect has little to do with political decisions in Washington or Riyadh, and everything to do with market expectations. The Saudi production increase was seen in the market as minuscule, and no one expected the suspension of shipments to the U.S. government's Strategic Petroleum Reserve to have much impact on supplies.
More important, the traders placing the bets expect prices to just keep moving higher.
Goldman Sachs, one of the world's most influential investment banks, underscored that sentiment Friday when it hiked its oil price forecast for the second half of the year to $141 a barrel, up from $107 previously. Analysts at the bank argue that the oil market is undergoing a "structural repricing" that will continue to play out for some time to come.
James Cordier, president of Liberty Trading Group in Tampa, Fla., agreed that the moves by both the U.S. and Saudi Arabia were "insignificant" and would do little to dent the rally in oil prices. Like a number of other analysts, he believes prices are rising not because of a speculative bubble, but simply reflect finite supply and soaring global demand.
Crude's latest surge comes a week before the Memorial Day holiday, the traditional start of the summer driving season, suggesting that retail gas prices still have further to rise.
Metro Atlanta gas prices are nearing the $3.80 mark as crude oil prices continue their upward march.
Sunday's average for regular in the metro area was nearly $3.79 per gallon, which tracks motorist reports.
RELATED: • •
That's up from $3.66 one week ago and $3.42 one month ago.
Crude oil jumped $2.17 on Friday to another record close of $126.29, despite news that Saudi Arabia had boosted its oil output by 300,000 barrels a day and U.S. government plans to stop adding to the Strategic Petroleum Reserve.
Both moves were designed to allay concerns about an overheated oil market that's squeezing motorists and inflating the prices of all sorts of goods.
Neither appeared to have any effect on the markets, however.
The reason for the disconnect has little to do with political decisions in Washington or Riyadh, and everything to do with market expectations. The Saudi production increase was seen in the market as minuscule, and no one expected the suspension of shipments to the U.S. government's Strategic Petroleum Reserve to have much impact on supplies.
More important, the traders placing the bets expect prices to just keep moving higher.
Goldman Sachs, one of the world's most influential investment banks, underscored that sentiment Friday when it hiked its oil price forecast for the second half of the year to $141 a barrel, up from $107 previously. Analysts at the bank argue that the oil market is undergoing a "structural repricing" that will continue to play out for some time to come.
James Cordier, president of Liberty Trading Group in Tampa, Fla., agreed that the moves by both the U.S. and Saudi Arabia were "insignificant" and would do little to dent the rally in oil prices. Like a number of other analysts, he believes prices are rising not because of a speculative bubble, but simply reflect finite supply and soaring global demand.
Crude's latest surge comes a week before the Memorial Day holiday, the traditional start of the summer driving season, suggesting that retail gas prices still have further to rise.
Labels: ...this shit right HERE..., ain't that interesting
posted by ~Kesh @ 5/23/2008 11:35:00 AM
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