NATION & WORLD
Thursday, March 1, 2012 ■ Page 17 Oil prices rising to near 2011 highs
By CHRIS KAHN AP Energy Writer
approaching last year’s highs as tensions increase over Iran’s nuclear program. The rise pushed gasoline prices on Feb. 24 to a national average of $3.65 per gallon, the highest ever for this time of year. Western nations fear Iran is building
a nuclear weapon and have been trying to force it to open its facilities to inspec- tion. Iran has refused, turning away in- ternational inspectors this week for the second time this month. The United Na- tions said Feb. 24 that Iran has respond- ed to the recent scrutiny by speeding up production of higher-grade enriched uranium, feeding concerns that it is de- veloping a bomb. As both sides dig in for a protracted
NEW YORK (AP) — Oil prices are
Iran, and Iran has said it is ready to strike pre-emptively,
Intermediate crude rose by $1.94 to end the week at $109.77 per barrel in New York. Brent crude rose by $1.85 to fi nish at $125.47 per barrel in London. WTI peaked near $114 a barrel last
May, while Brent rose above $126 per barrel.
standoff, investors are snapping up oil contracts in case fi ghting breaks out in the heart of the one of the world’s big- gest oil-producing regions. “Everyone’s pricing in the potential for war now,” in- dependent analyst Stephen Schork said. “Without a concrete resolution, nobody knows how high this can go.” Israel hasn’t ruled out an attack on
from crude oil, has soared with oil prices. The national average jumped by nearly 12 cents per gallon in a week, with state averages above $4 per gallon in Califor- nia, Alaska and Hawaii. It looks like they’ll keep climbing. Tom Kloza, publisher and chief oil analyst at Oil Price Information Service, said pump prices will add at least an- other 10 to 15 cents per gallon in coming days to refl ect a recent jump in wholesale markets. At $3.65 per gallon, gasoline is still below last year’s high of $3.98 and the re-
Tired of waiting to get paid?
Why wait? We’ll get you paid same day!
Oil Field Factoring Lines of Credit
Call Now 800.707.4845
The price of gasoline, which is made
Strait of Hormuz, if it is threatened. The Persian Gulf passageway is a potential choke point for oil supplies. One-fi fth of the world’s oil tankers pass through it every day. On Feb. 24, benchmark West Texas
possibly targeting the
cord $4.11 set in 2008. Kloza says pump prices are on pace to top both of those in coming months. He thinks gasoline will climb as high as $4.25 per gallon by late April.
The rise will weigh on the economy, pushing leisure and business travel costs higher. Every one-cent increase in the price of gasoline costs the economy $1.4 billon, analysts say. Prices have been surging particularly
on the West Coast where a BP refi nery was shut down after a fi re. That refi nery in Blaine, Wash., is the third-largest on the West Coast with a production capac- ity of 230,000 barrels per day. The closure comes at a tough time for
Strategic Petroleum Reserve, but ana- lysts say that would be ineffective. The government tried that last summer af- ter the Libyan uprising shut down that country’s oil fi elds. Prices dipped slightly but eventually rebounded. Independent oil analyst Andrew Li-
the refi ning industry. Most refi ners are already slowing production to get ready for a switch over from winter to more expensive summer fuel blends. The sea- sonal switch usually creates a temporary dip in supplies that pushes prices higher at this time of year. The loss of the BP re- fi nery could make that dip even deeper. Gasoline has become a major politi- cal issue this year as prices tick higher. Some lawmakers have called on the
Obama administration to release more oil from emergency stockpiles in the
pow pointed out that the U.S. has ad- equate oil supplies right now, and a re- lease of reserves wouldn’t make much sense. Traders are mostly concerned with how the Iran situation will affect supplies this summer. Nobody’s sure what will happen, Lipow said, and that is pushing investors to buy more oil as an insurance policy against a major confl ict. “It’s just unclear how this plays out,”
Lipow said. “The worry is that Iran will be forced into a position that they try to impact their neighbors in some way” and curtail oil production in the entire region. In other energy trading, heating oil
rose by 2 cents to fi nish at $3.32 per gal- lon, while gasoline futures rose by 4 cents to end at $3.15 per gallon. Natural gas prices fell by 7 cents to fi nish the week at $2.55 per 1,000 cubic feet.
GET PAID TODAY!
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24