Oil Price Soars on Supply Jitters

Gas price at the pumpNEW YORK (AP) - The price of oil rose more than 3 percent Tuesday on concerns about supplies from the Middle East and the North Sea.

Benchmark crude gained $2.86, or 3.2 percent, to $92.19 a barrel in New York. In London, Brent crude, which is used to price international varieties of oil, rose $2.38, or 2.1 percent, to $114.20.

Analysts said that some North Sea oil rigs have been slow to resume production after undergoing maintenance. There is also concern that tensions between Turkey and Syria could escalate and disrupt supplies from the Middle East. The Middle East and North Africa account for about a third of global oil production.

Saudi Arabia's oil minister tried to ease concerns about supply. Ali al-Naimi told reporters that his country now pumps around 10 million barrels a day, and said its production capacity of more than 12 million barrels is sufficient to meet any world demand.

Worries about supplies also seemed to trump bearish news from the International Monetary Fund. The international lending organization cut its global growth forecast to 3.3 percent for this year from 3.5 percent and said advanced economies are at the risk of another recession.

In the U.S., the average price for a gallon of gasoline fell less than a penny to $3.815. But prices rose again in California, although by the smallest amount in days. Drivers in the state are paying an average of $4.67 per gallon, up 49 cents in a week.

In other futures trading in New York:

- Wholesale gasoline rose 8 cents, or 2.6 percent, to $2.97 per gallon.

- Natural gas rose 2 cents to $3.42 per 1,000 cubic feet.

- Heating oil advanced 6 cents to $3.20 per gallon.

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October 10 2012 at 10:13 PM Report abuse rate up rate down Reply
1 reply to weelman41's comment

The oil from the Keystone pipeline won't make a drop of gasoline. It is basically a heavy tar that can only be used as bunker fuel for ships and power plants. China has the contract to buy all of it, won't see a drop here in the US. It will go directly to the gulf, loaded on ships and headed for Shanghai. I thought everyone knew this already. Are you a low information voter by any chance?

October 11 2012 at 12:30 PM Report abuse rate up rate down Reply
1 reply to chris1011's comment

Canadian Prime Minister Stephen Harper began to court Chinese investment in Keystone in the aftermath of Obama's botched rejection of TransCanada's Keystone proposal.

The initial proposal assumed much of the Keystone oil would be consumed in U.S. market, but following the snub, Harper realized the US was increasingly an unreliable business partner. This is when the Chinese courtship began.

Thanks to Obama, perhaps our closest ally in the world is increasingly finding it preferable to do business with Communist China.

Another in a long line of epic fails!

October 11 2012 at 2:38 PM Report abuse rate up rate down

People, never believe anyone who can say, I can make you money! If they could, they would all be making it all for themselves. Number two; There is no-one in the universe that can change the way you live. No humans, no Gods, no tax breaks. So, instead of investing in all these wild things, just use it for yourself and your families. This will pay more dividends than any made up bull, that man can invent. Try it and see.

October 10 2012 at 10:12 PM Report abuse +1 rate up rate down Reply

They do it because they can and we put up with it. It only takes a news cycle of some ridiculous thing and it is up the next day. Not just a dime but a thirty cent or more swing. And it does not matter who the president is. When Bush was president we went to over $4 a gallon. First hand knowledge of this, as a route driver who depended on it. The only one making out in all of it is the oil companies and speculators who are making record profits. And, we'll just keep filling up because we need it.

October 10 2012 at 9:40 PM Report abuse +1 rate up rate down Reply
1 reply to lakota70561's comment


We are them! They are us!

October 10 2012 at 10:49 PM Report abuse rate up rate down Reply

Prices soaring on concerns about supplies from the Middle East and the North Sea is nothing but a lie. The number one supplier of oil to the U.S. is Canada, the number two is Mexico, and number three is Venezuela, None of these are in the Middle East where we only import 2% of our oil. Prices are high because oil companies with the aid of Congress are allowed to charge at the International rate, not what they actually pay for it. All you have to do is check out the profit margin for U.S. oil companies

October 10 2012 at 8:37 PM Report abuse +4 rate up rate down Reply
1 reply to reiii's comment

The average profit margin for integrated oil companies is 6-7%, slightly below the mid-point of the average for all industries in the S&P 500.

October 10 2012 at 10:44 PM Report abuse rate up rate down Reply

They are doing this because they can and there is nothing to stop
them. They let things go too long holding gas prices relatively
stable for about 6 months. The oil companies are usually not that
generous. Over $4 gal. has been in the sights for over a year now.
It is time for them to not only hit that $4 mark but to make up for
lost time and get it to at least $4.40 gal. by christmas. This will be
their present for the holidays. Remember - use more oil - prices
go up. Use less oil - prices go up. Some third world country
dictator has a heart attack - price goes up. Oil exec mistress get's
knocked up - price goes up. Head of Opec cat has kittens - price
What an envious business to have?

October 10 2012 at 8:27 PM Report abuse +4 rate up rate down Reply
2 replies to estimatorone's comment

There "they" go again!

October 10 2012 at 10:50 PM Report abuse rate up rate down Reply

So buy a Volt or at least a hybrid car that gets over 40mpg. And laugh at the oil companies. With a Prius you can confortably get 55 - 60 mpg if you drive carefully.

October 11 2012 at 12:32 PM Report abuse rate up rate down Reply
merle the pearle

They are doing this, because they can they don't want any electric cars or anything
that runs on another type of fuel because they won;t be able to profit, we are at
their mercy, they want romney to win so they can keep getting government welfare!

October 10 2012 at 8:05 PM Report abuse +2 rate up rate down Reply
merle the pearle

Something shoud have been down about this problem when we had the gas shortage
in 1973, but of court the usa was to busy to worry about oil then now even if theres
talk of a war heavens forbid, the price go up, you can dril lyour butt off, we won't be
able to supply enough oil to quench our appetite for this liquid gold, we should have
had a transportation system in place all accross our states, so that there would be
less driving, another thing we are so spoiled and selfish, we like to drive alone in
our autos, habits are hard to break!

October 10 2012 at 7:57 PM Report abuse rate up rate down Reply
Steve Oneal

mitt romney can make the change

October 10 2012 at 7:51 PM Report abuse -2 rate up rate down Reply

Oil is high becoz of BUSH the republican clown who gave them free reign. Vote rep again, and I bet gas hits 7.00 within 1 year, then, Good Fer Ya!

October 10 2012 at 7:38 PM Report abuse +2 rate up rate down Reply
1 reply to eb50tj's comment


Obama has been POTUS nearly 4 years. Is he really as incompetent as you imply?

October 10 2012 at 10:51 PM Report abuse rate up rate down Reply
just me

Who is kidding Who the oil prices are sky high and the Goverment is doing nothing about it. Why should they we pay for their fuel not them. Once it hits the news the pumps prices are being changed right away as the news speaks. Home heating oil is out of sight as everything else is. Yes where is the change? I know it has changed for the worse that is what we have people.

October 10 2012 at 7:13 PM Report abuse rate up rate down Reply