Oil prices on Wednesday breached $90 a barrel, keeping gas prices near $3 per gallon as the U.S. petroleum inventory shrunk by about 1.5%.

Oil for February delivery increased 14 cents to $90.62 a barrel on the New York Mercantile Exchange, up from approximately $81 a barrel a month ago. Unsurprisingly, gas prices have surged as a result. Gas prices averaged $2.97 per gallon on Monday, the most recent day available, marking a 30-cent jump from Labor Day, according to an Energy Information Administration report Wednesday. That's the largest such jump in at least 20 years, the EIA noted.

The higher oil prices reflect tightened petroleum inventories and some growth in the U.S. economy, which is increasing demand. U.S. commercial crude inventories totaled 340.7 million barrels for the week that ended Dec. 17, down 5.3 million barrels from the previous week, according to the U.S. Energy Information Administration.

Meanwhile, the U.S. Commerce Department also on Wednesday revised its third-quarter gross domestic product growth figure to 2.6% from 2.5% last month.


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j0ygasm

OIL -

Here's an interesting read, important and verifiable information:

About 6 months ago, the writer was watching a news program on oil and
one of the Forbes Bros. was the guest. The host said to Forbes, "I am going to
ask you a direct question and I would like a direct answer; how much oil
does the U.S. have in the ground?" Forbes did not miss a beat, he said, "more
than all the Middle East put together." Please read below.

The U. S. Geological Service issued a report in April 2008 that only
scientists and oil men knew was coming, but man was it big. It was a
revised report (hadn't been updated since 1995) on how much oil was in
this area of the western 2/3 of North Dakota , western South Dakota , and extreme eastern Montana ...... check THIS out:




http://bakkenshale.net/bakkenshalemap.html




The Bakken is the largest domestic oil discovery since Alaska 's Prudhoe
Bay, and has the potential to eliminate all American dependence on foreign
oil. The Energy Information Administration (EIA) estimates it at 503 billion
barrels. Even if just 10% of the oil is recoverable... at $107 a barrel,
we're looking at a resource base worth more than $5..3 trillion.

"When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.." says Terry Johnson, the Montana
Legislature's financial analyst.

"This sizable find is now the highest-producing onshore oil field found
in the past 56 years," reports The Pittsburgh Post Gazette. It's a
formation known as the Williston Basin , but is more commonly referred to as the
'Bakken.' It stretches from Northern Montana, through North Dakota and
into Canada .. For years, U. S. oil exploration has been considered a dead
end. Even the 'Big Oil' companies gave up searching for major oil wells
decades ago. However, a recent technological breakthrough has opened up
the Bakken's massive reserves.... and we now have access of up to 500
billion barrels. And because this is light, sweet oil, those billions of barrels
will cost Americans just $16 PER BARREL!

That's enough crude to fully fuel the American conomy for 2041 years
straight. And if THAT didn't throw you on the floor, then this next one
should - because it's from 2006!

U. S. Oil Discovery- Largest Reserve in the World

Stansberry Report Online - 4/20/2006

Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the
largest untapped oil reserve in the world. It is more than 2 TRILLION
barrels. On August 8, 2005 President Bush mandated its extraction. In
three and a half years of high oil prices none has been extracted. With this
motherload of oil why are we still fighting over off-shore drilling?

They reported this stunning news: We have more oil inside our borders,
than all the other proven reserves on earth. Here are the official estimates:

- 8-times as much oil as Saudi Arabia
- 18-times as much oil as Iraq
- 21-times as much oil as Kuwait
- 22-times as much oil as Iran




- 500-times as much oil as Yemen

- and it's all right here in the Western United States .

HOW can this BE? HOW can we NOT BE extracting this?
Because the environmentalists and others have blocked all efforts to help America become independent of foreign oil! Again, we are letting a small group of people dictate our lives and our economy.....WHY?

James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East - more than 2 TRILLION barrels untapped. That's more than all the proven oil reserves of crude oil in the world today, reports The Denver Post.

Don't think 'OPEC' will drop its price - even with this find? Think
again! It's all about the competitive marketplace, - it has to. Think, OPEC just might be funding the environmentalists?

Got your attention yet? Now, while you're thinking about it, do this:

Pass this along. If you don't take a little time to do this, then you
should stifle yourself the next time you complain about gas prices - by doing NOTHING, you forfeit your right to complain.

Now I just wonder what would happen in this country if everyone of you sent this to every one in your address book.

By the way...this is all true. Check it out at the link below!!!
GOOGLE it, or follow this link. It will blow your mind.

http://www.usgs.gov/newsroom/article.asp?ID=1911
>

December 24 2010 at 8:47 PM Report abuse rate up rate down Reply
jdrumerrnr

A car that runs on air?

December 23 2010 at 8:34 AM Report abuse rate up rate down Reply
dsquires40

I bet we'll see 2.50 by days end tomorrow! Merry Christmas and cake for everyone!

December 23 2010 at 7:48 AM Report abuse rate up rate down Reply
procompdynamics

Speculators going wild ,again. This is gouging and profit taking at it's best. Dollars up,dollars down,demand up,demand down,inventories up inventories down. The only constant is that oil is going up!!

December 23 2010 at 7:17 AM Report abuse rate up rate down Reply
bjw367

"I think people still see gas as a necessity" is one of the many remarks made that make this second rate "analysis" not worth looking at!!!!

December 23 2010 at 1:09 AM Report abuse rate up rate down Reply
Scott

Merry christmas Nymex and wallstreet traitors! You gave china and opec what they've been asking santa for all year long!

December 22 2010 at 10:43 PM Report abuse rate up rate down Reply
Tim

Please...low inventory...And all that oil capured in the Gulf went where???
Higher demand...they afraid to say "we sell more when it's cold so now we charge you more okay"???

December 22 2010 at 10:20 PM Report abuse rate up rate down Reply
bootjack

Vote Barry Soetoro out of the White House and demand less Government. Watch ALL prices go down. We are SPENT into oblivion.

December 22 2010 at 8:18 PM Report abuse +2 rate up rate down Reply
bootjack

Addicted to food...? Gotta eat. The price of gas is reflective to the price of LIFE going up.

December 22 2010 at 8:15 PM Report abuse +2 rate up rate down Reply
bootjack

Sorry don917...The devaluation of the $ under Our Liar-in-Chief drives up the price of Petrol. Not the Caddilac or Hummer owner.

December 22 2010 at 8:14 PM Report abuse +1 rate up rate down Reply