Oil Breaches $91 a Barrel in Light Trading

by Danny King Dec 28th 2010 5:40PM
Updated Dec 28th 2010 5:43PM

Oil prices on Tuesday reached the $91-a-barrel mark in light trading as strong demand and limited supply continues to push up prices toward the end of the year.

Oil for February delivery increased 27 cents to $91.27 a barrel in New York Mercantile Exchange trading Tuesday. It had been trading at about $81 a barrel about a month ago.

The higher oil prices reflect tightened petroleum inventories and what may be a slight resurgence in the U.S. economy, which is increasing demand. U.S. commercial crude inventories totaled 340.7 million barrels for the week ended Dec. 17, down 5.3 million barrels from a week earlier, the U.S. Energy Information Administration (EIA) said last week.

With demand from countries such as China and India expected to increase next year, oil may surpass the $100 level in early 2011, the Associated Press reported, citing commodities analysts. Higher oil prices are also pushing up gas prices. The national average gas price for regular unleaded is $3.05 a gallon, up about 18% from a year ago, according to AAA.

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imme534333

Some are predicting that gasoline will reach or exceed five dollars a gallon some time this year. There will be consequences to a higher price for gasoline and diesel. Railroads can move a ton of freight five miles for ever mile that a truck can move the same amount. Rail will become even more competitive and put the long haul truckers out of business. Rail roads will be hiring and improving their tracks and maybe even opening old abandoned right of ways. The suburbs will be less and less attractive as people move closer to work and cities. poor people will be pushed out of city centers and into the suburbs. Industrial land near railroads will rise in price.

December 29 2010 at 6:03 PM Report abuse rate up rate down Reply
maloontransllc

Big wave you hit the nail on the head. The only problem is that by excepting 5 dollar a gallon gas is it will kill any recovery in our economy. Heres a few facts.1 We in the trucking industry are paying an average of 3.45 per Gallon. 2 We are getting less fuel mileage due to the EPA mandated changes to the Engines we are forced to buy.3 The trucking industry moves the economy. We are forced to raise our rates to stay in bussiness which in return shows up in everyones food bill clothing bill ECT.SO if you stop and think about it for a second it means we all have less to put back into the economy.
Now that does not fix the two biggest problems we have,which is Greed by a few,lack of leadership in Washington by many. Our so called leaders in Washington have the power to straighten this out.1 go after the speculators that do drive up the price for there own gain. 2 Use our taxes what they were really meant for( just incase we have forgotten what that is,it is to make our society better for the future generations).If anyone thinks that we are giving our children a better future should maybe stop smoking the wacky stuff.

We all have the ability to contribute by purchasing fuel effcient vehicles turning the heat down a little ect. We must change our attitudes as a nation. Brazil did it but it didnt happen over night we need to start today!!!!

December 29 2010 at 8:36 AM Report abuse +2 rate up rate down Reply
bargesa

The oil companies make profit on every barrel of oil that is imported into the U.S. With the U.S. importing 60% of its oil, can you imagine what would happen to oil company profits if the U.S. achieved energy independence? Is it any wonder that the oil companies would block all moves to achieve energy independence? The U.S. should put a special tax on profit from imported oil. This would give the oil compsnies plenty of incentive to develop domestic alternative energy?

December 29 2010 at 3:13 AM Report abuse rate up rate down Reply
bigwave48

Solar, hydro, nuclear, wind, ocean , all these are options, energy sources that renew themselves. Free energy. But it comes at a huge cost. The oil companies do not want this. clean coal technology is a fact. It all comes at a cost. Do we want to spend twenty years changing from fossil fuels, we can do it. But it will take 5 dollar gallon gas. People react only if they have to. So when gas gets to high. You will be surprised how many people will get smaller cars, electric cars. Solar on there houses. It takes time, but we have to bite the bullet sometime. Change always hurts, but our future depends on it.

December 28 2010 at 7:56 PM Report abuse rate up rate down Reply
Greg

We continue to be held hostage by the oil companies. As a country, we have done the right thing and reigned in our consumption. We manufacture better quality, higher mileage cars. But we still pay more for less gasoline. 10% of our gas is Ethanol (corn). My gas mileage suffers about 3-5 miles per gallon with the added corn. My lawn mower, snow blower and gas trimmer need tune ups more often. Some geniuses want to increase the Ethanol content in gasoline to 15%. My car and a lot of others are not built to run on this. I'm sure the price will not go down, my mileage will drop again and my lawnmower will gasp its last breath.
I've seen rising prices at the super market that I dare say can be attributed to Ethanol production. With corn prices higher, Dairy and meat along with other foods associated with corn are more expensive but most noteably for me is my weekly Pizza and that just ticks me off! Corn is more expensive, raising prices for feed for cows, raising milk products, raising cheese prices, which screws with the cost of my Pizza. Where will it end?

December 28 2010 at 7:38 PM Report abuse +2 rate up rate down Reply
Jen

Thought the beloved democrats, the party that is " not oil" was going to rein in oil speculation? Dumb asses who believe them!

December 28 2010 at 7:35 PM Report abuse +2 rate up rate down Reply
1 reply to Jen's comment
johnskii

Yes tthe Democrats had their chance with control of the Presidency, Senate and House of Representatives for two full years. WHAT HAPPENED WITH REINING IN OIL SPECULATION???

December 29 2010 at 7:29 AM Report abuse +1 rate up rate down Reply