Oil hits 11-month high (of $77 bbl)

Source: Reuters

LONDON (Reuters) - Oil briefly scaled a new 11-month high above $77 a barrel on Thursday amid increased flows of fund money, though gains were capped by news of refinery restarts in the fuel-hungry United States.

London Brent crude, seen as the best indicator of the global market, settled up 96 cents to $76.40 a barrel after climbing as high as $77.07 earlier in the day, within reach of the record $78.65 hit August 8, 2006.

U.S. crude was down 6 cents to $72.50 a barrel, keeping its big discount to the London benchmark due to robust stockpiles in the Midwest.

"This (recent) rally is very much fund driven. ... The entry of long-only hedge funds into the market is a major factor this time around. We wouldn't rule out Brent hitting $80 this summer," said Graham Sharp, director and one of the funding partners at commodities trading group Trafigura.

Tighter supplies of oil from the North Sea over the summer due to oilfield maintenance and a recent pipeline problem also have helped Brent advance towards its all-time record.

Read more: http://www.reuters.com/article/hotStocksNews/idUSKRA93325920070712?sp=true

I guess that $3.25/gal will be here for the foreseeable future.

It's still cheaper than in Europe. Kwitcher bitchin!

I went to buy gas yesterday, but wasn't able to because of a problem with my car and had to turn around and come home.

So today, I go back to the same place, hopingthe price of gas didn't change, and it had jumped 14 cents overnight! Holy cr@p!

Higher mortgage reset, higher gas price, higher food price, ...

oh my!

:sarcasm:

Growing economies in China and India are going to increase demand whereas supply is basically going to remain static, as far as I know. Perfect storm, if you're an oil company.

Pardon me now while I hop on the bike and pedal down to the drugstore for more full, no health insurance, priced insulin.

Welcome to my Amerika, everyone.

out of our ass.

Anything that pushes the economic balance toward the developing countries is a good thing in my book, but I'm not sure this is it. I do tend to think that expensive oil has a tendency toward strengthening multipolar world order.

Wonder how long it will take to hit that mark and surpass it?