10/29 4:11 EDT - NYMEX Crude Oil At $93.46 - Brent Breaks $90; December Delivery Hits $93.53

[hatrack]

On edit - added Bloomberg article.

http://www.nymex.com/index.aspx

Oct. 29 (Bloomberg) -- Crude oil rose to a record $93.80 a barrel in New York after Mexico shut a fifth of its production and the dollar fell to a record low.

State-owned Petroleos Mexicanos, or Pemex, halted about 600,000 barrels a day of output as a storm passed through the Gulf of Mexico, spokesman Carlos Ramirez said in Mexico City. Early today, the dollar dropped to $1.4377 per euro, the weakest since the introduction of the 13-nation common currency in 1999.

``Any bullish headlines are fair fodder for the market at this time,'' said Antoine Halff, the head of energy research at Fimat USA Inc. in New York. ``The Mexicans shut-in a great deal of production, spurring buying today.''

Crude oil for December delivery rose $1.67, or 1.8 percent, to settle at a record $93.53 a barrel at 2:46 p.m. on the New York Mercantile Exchange. Futures climbed to $93.80, the highest intraday price since trading began in 1983. Brent crude oil for December settlement rose $1.63, or 1.8 percent, to settle at a record $90.32 a barrel on the London- based ICE Futures Europe exchange. Brent reached $90.49, the highest since trading began in 1988.

EDIT

http://www.bloomberg.com/apps/news?pid=20601087&sid=amCTYd_2TWL8&refer=home

[Warpy]

1. $100 by the end of the year?

Maybe by the end of the week.

The only way to drop it back to a reasonable level is to get rid of Stupid and his whole band of merry warmongers.

[Maven]

2. Sorry, that's not the case.

This is a geological and economic problem, not a political one.

An election is not going to make it go away.

[Warpy]

4. No, you are wrong

Bush's warmongering and the constant threat of having shipping through the Gulf of Persia closed are what is driving the price up now.

Oil won't go below $50 because of the fall in the dollar, something also caused by insane policies at the top.

Yes, production in many important fields is dropping. It's just not dropping that fast.

[Maven]

5. OK, get back to me in Jan. '09

Oil is never going back to $50, or anywhere near it.

Ever.

Production doesn't have to decline that fast in order to have a big effect on price, when demand is increasing at a constant rate. In fact, production is pretty much flat at this point. Once it does go into permanent decline, the effect will be even more magnified.

[Warpy]

6. Do you expect anyone to fix it overnight?

Did Clinton fix the Bush economy overnight?

We'll be lucky if we're not in a full blown depression by then.

[Maven]

9. No, I don't expect anyone to fix it.

That's my point.

[NickB79]

7. I recall reading that the 1973 embargo only cut oil supplies by 5%

And we all saw what that did to oil prices.

A butterfly flapping it's wings in the rainforest, a ripple in a pond, and all that jazz.....

[Maven]

8. Exactly.

It doesn't take much, when you're talking about the life blood of the world economy.

[pscot]

3. Cheap at twice the price

n/t