Oil Stays Above $51 (U.S.)

By GEORGE JAHN

Wednesday, February 23, 2005 Updated at 7:55 AM EST

Associated Press


VIENNA — Oil prices fell Wednesday but held above $51 (U.S.) a barrel, retaining some of the previous day's surge as traders fretted about the impact of a weaker U.S. dollar on energy markets.

Analysts said continuing cold weather in the Western Hemisphere as well as supply concerns also set a high floor for crude.
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But market participants are looking past the OPEC meeting and are starting to worry about longer-term supply, said Michael Guido, director of commodity strategy in New York for French bank Societe Generale.

“Spare production capacity has always been an issue, but if these global oil demand forecasts are on the money, can supply keep up?” he asked. “OPEC seems to be at (maximum) capacity right now.”
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Oil is now 50 per cent more expensive than a year ago due to robust global demand, limited spare production capacity and concerns about disruptions to output, especially in insurgency-ridden Iraq and strike-hit Nigeria.

Traders have also cited concerns over winter weather in the Northern Hemisphere and the amount of U.S. energy stockpiles, especially of heating oil.
http://www.theglobeandmail.com/servlet/story/RTGAM.20050223.woil23oil/BNStory/Business/

taking us straight to Hell!

Global demand for oil is outstripping capacity. Were at half a gallon per day for each person. And thats the limit for easily recoverable oil.

That oil prices have gone over $50 a barrel should serve notice to discerning American citizen-voters that Banana Republican and energy company propaganda to the effect of our "wise" energy and diplomatic policies are working so well are only so much BUMF. Despite Gale Norton giving the high sign for energy companies to go drill on federal lands below market rates, despite the pooh-poohing of alternate energy sources as uneconomical, despite the invasion of Iraq that was supposed to pay for itself by releasing cheap Iraqi oil, the price of petroleum has continued to go up, and American citizen-voters, great-grandchildren of Mencken's "booboisie", are expected to continue to applaud the "wisdom" of our Banana Republican leadership.