Here We Go Again, Oil Prices Rising

By: Associated Press
By: Associated Press
Latest increase pushes oil over $70 per barrel.

In this photo taken Friday, May 1, 2009, operator Steve Pratt looks at a simple from offshore oil drilling platform "Gail," operated by Venoco, Inc., off the coast of California near Santa Barbara. (AP Photo/Chris Carlson)

Oil prices are spiking above $70 per barrel for the first time since October.

Prices jumped after a U.S. Labor Department report Friday that showed the pace of layoffs eased in May. The unemployment rate, at 9.4 percent, is still the highest in over 25 years.

Benchmark crude for July delivery hit $70.32 per barrel, the highest since October.

Crude's stellar rise -- it now fetches roughly twice what it did only four months ago -- is leading analysts to revise forecasts upward, with many now saying they expect a barrel to cost $80 or more by year's end.

Crude prices have been boosted by expectations that the U.S. economy could be stabilizing and as some investors scoop up oil and other commodities as a hedge against a weak dollar.

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  • by Dan G Location: Irvine, CA on Jun 11, 2009 at 03:47 PM
    Nonsense. I remember when gas was 28 cents (early 1970s), even with weak US dollars and middle east turbulence. Prices DID NOT go up - they stayed the same, year after year. And no speculators bidding up the prices just because they THINK the economy will be better later. What if it isn't? Will the gas prices then come down? I think we know the answer to that one!
  • by Anonymous on Jun 5, 2009 at 05:31 PM
    SO WHERE is the OUTRAGE?? Barack Obama!!! what's the deal? Since , according to him we are a muslim Nation now, and probably should have oil access the same as the saudi's , which means keeping costs down!
  • by Anonymous on Jun 5, 2009 at 01:13 PM
    If the demand is down, why is the price going back up?
  • by St. James Location: St. Johns on Jun 5, 2009 at 11:25 AM
    It's not that the government allows them, the government has set it up for them to make huge profits. The Demacrats have limited drilling, which limits compatition,that allows for unlimited profits. The worst president in modern history, Jimmy Carter created a similar situation in the 70's. Limited American oil production and profits, while OPEC had run away control of the market. Keep voting Demacrat and you will be blow away by wind power over the next 5 years.
  • by Sue Location: Jackson on Jun 5, 2009 at 09:14 AM
    I agree with what Matt wrote. I don't think it is based on supply and demand though because there are ships stored off the coast of this country filled with oil. The companies are stockpiling it; I call this price fixing. I think the government should intervene.
  • by Anonymous on Jun 5, 2009 at 09:02 AM
    Will it hit $5 a gallon?
  • by Bill Location: Delta Twp. on Jun 5, 2009 at 08:44 AM
    I think the reason government allows the average citizen to be ripped off by the oil companies is because they know if they do anything to upset oil they will lose the millions of dollars that they recieve in campaign contrubutions. It used to be that way with the big 3, but now that they have to give them money they cannot afford to upset their biggest cash cow to protect the people they represent and who put them in office. This cycle will never end until we do away with all political contributions or the politicians themselves. Let's go to the national zoo and recruit some of the animals, they certainly could do a better job of running this country as compared to what we have now. Just my opionion !!!
  • by Chris Location: dug out cave in mason on Jun 5, 2009 at 08:33 AM
    I sold my car last year. Have not driven since. Don't commit to what the system says you can't live without, and you'll have a great liberating feeling. Not everyone can do what i did, i'm just lucky.
  • by Dave Location: Litchfield on Jun 5, 2009 at 08:09 AM
    The question that needs to be addressed is how will rising oil prices affect the economy? For the better, for the worse, what? As for the rising price of gasoline, I honestly feel that it is the result of greed on the part of the oil companies.
  • by Black Gold-Texas Tea on Jun 5, 2009 at 07:23 AM
    Ole Jed's a millionaire. Gasoline is not the only thing that comes from crude. Do you feel a pain in your backside. Yep it's the summer driving season and the leading analysts have changed their forecast. Do these people go to meterologist training. It's summer, gas prices go up, the oil barrons make lots of money, the government says they are powerless to do anything. They can take over the banks , the auto industry, but they're powerless to do anything. Matt is partially correct. People will not get smart and use other transportation the government will socially engineer you to use other transportation. Stock up for your backyard bar-b-Q's it's going to be a great time to drink beer and relax at home, that is if you have a job. Have you ever heard of an oil company laying anyone off? Question of the day. What will you do to cut driving expenses?
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