Oil Prices Soar to Five-Month High

by Danny King Oct 5th 2010 8:45PM
Updated Oct 6th 2010 3:27AM

Oil prices soared Tuesday, reaching their highest point in five months. U.S. crude for November delivery increased almost 2% to close at $82.82 a barrel Tuesday, and at one point touched $82.99 per barrel, the highest intraday price since May 4, according to a Reuters article.

The reasons? A weakening dollar made oil relatively cheaper for overseas purchasers, increasing foreign demand, while the Bank of Japan's decision to cut its interest rate to 0% to spur the Japanese economy also helped push petroleum prices up, Reuters reported. A strike by French workers and a Sunday barge crash, which shut down a Texas shipping route, also boosted crude-oil prices, Reuters said. The Houston Ship Channel was initially expected to reopen Tuesday, but the U.S. Coast Guard now expects it to remain closed until Wednesday.

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6 Comments

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mikfete58

Gold is at 1,347. Your dollar is becoming worthless. This is being accentuated daily. Depression 2 is here. Gasoline will soon be $3.00, and the $3.50 or more per gallon and continue to rise. We're all going over the falss together!

October 06 2010 at 2:27 AM Report abuse +1 rate up rate down Reply
Scott

All the more reason to do some serious house and senate cleaning in NOV. Time for Mainstreet to send a little message to Wallstreet and the NYMEX - Go to Hell! There is no reason for gas to quickly jump with pants on fire a dime in 2 days except for traiters who need to make hummer and mansion payments due the first of the month. But that's ok, we are getting used to the smoke and mirrors coming out just in time for the election. How this is suddenly good and that is suddenly turning around. How stocks are making this great rebound. Even how China is watching our back.....

October 05 2010 at 11:18 PM Report abuse +3 rate up rate down Reply
1 reply to Scott's comment
johnskii

Basically as I see it the Status Quo is frightened to a point that has not been seen in decades or centuries. The average American "JOE OR JANE" being elected to Congress. They can see the writing on the wall and are pulling all the stops to try this from occuring. I am not a member of the Tea Party or even follow it but an decades old Independent "Straight Shooter" citizen of the Good Ole U.S.A. who wants to turn this country around for the good...

October 05 2010 at 11:48 PM Report abuse +2 rate up rate down Reply
netexas121

Here we go again another barrage of Bush era excuses for spiking oil prices. I thought there was supposed to be a stop to oil futures getting out of hand. Feds better put a stop on this before we have a repeat of 2008 or worse Black Ocotober.

October 05 2010 at 9:09 PM Report abuse +4 rate up rate down Reply
2 replies to netexas121's comment
luvcreole

See, that's what partial truths get you. Politically dervived explainations like what you've inferred. Oil futures speculation isn't the problem THIS time, like it was under Bush. Today, the dollar IS losing value because of the debt the Govt is incurring with bailouts and stimulus spending combined with the failure of the govt. to address the real reason for this financial problem in the first place. The outsourcing of multiple millions of Middle Class jobs which would provide the tax base to run the country and the income for people to dig out of debt. Without a decent production base, the dollar is relying on govt spending and international trade for demand to keep it's value stable, and it's not enough. People want out of U.S. dollars...and it's only going to get worse.

October 05 2010 at 9:37 PM Report abuse rate up rate down Reply
johnskii

BUSH, BUSH II, CLINTON, REAGAN, CARTER, OBAMA yes OBAMA are in the same league where the oil industry is concerned. No it is not going to be a "Black October" but a "Black December" when all these investment firms pull out all the money they are currently putting in the market now to make their year end summaries look fine and dandy. The small and medium size investor is sitting still knowing very well the economy "SUCKS". Don't be stupid keep your money out of stocks for at least six to nine months.....

October 05 2010 at 9:51 PM Report abuse +3 rate up rate down Reply