Why Oil Is High ... And Going Higher
Source: Netoilexports.blogspot.com
You can see exports are down year over year while demand keeps rising. And that's why the Saudi agreement to pump more oil isn't calming the markets -- it's too little too late. Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar curbed their output by 544,000 barrels a day last year. At the same time, their domestic demand increased by 318,000 barrels a day. So, their net exports dropped by 862,000 barrels.
It would seem that the proposed rise in Saudi production of 200,000 barrels from June to July, on top of the 300,000 bpd rise in May, is not enough to even make up for last year's cut in OPEC exports.
Here is some other news you can use ...Analyst: Air fares could double if oil prices keep rising Airlines may have to double fares this year if crude oil prices rise above $150, industry analyst Michael Boyd warned Friday. Ticket prices will need to jump 80 percent to 100 percent to cover the airlines' jet fuel if oil prices go that high, he said. "As of June 2008, the entire U.S. air transportation system is operating on borrowed time. Between January and today, the situation has degenerated from a crisis to a survival situation," the president of the Boyd Group said in a report.
China Becomes Net Gasoline Importer for First Time China was a net importer of gasoline for the first time in May as rising oil costs discouraged refiners from processing crude into fuels, and in preparation for the August Olympic Games.
In other news, Peak Grain may not be far away ...Floods push U.S. corn prices to records Rain in the Midwestern United States has damaged crops and delayed plantings, heightening fears that there might not be enough corn to meet global demand for food, feed and biofuel. The fears drove the grain to a record high for the eighth trading day in a row.
posted by Sean Brodrick @ 11:38 AM
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