Oil Spikes Above $100 a Barrel

Glenn Swanson
by Glenn Swanson
oil spikes above 100 a barrel

Yesterday’s closing price for crude represents the first time oil's spiked above $100 a barrel since January 3. Analysts say there isn't a single factor to explain the move. Houston’s KHOU reports that a refinery explosion in West Texas and the possibility that OPEC will cut production next month are driving prices higher. Alon officials say the refinery in Big Spring, TX could be closed for as long as two months; company president and CEO Jeff Morris says the refiner should have contingency supply plans in the coming days. The company doesn’t know what caused the blast, but says it happened near a propylene splitter unit. As of early this afternoon, our friend Steve Austin over at Oil-Price.net pegs the current price of oil just under $99.50 a barrel. The website also forecasts the price of oil will be $129.04 a year from now. If so, it’ll be more bad news for consumers, automakers and the U.S. economy in general.

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4 of 5 comments
  • GS650G GS650G on Feb 20, 2008

    Unless demand levels off and drops. IF it keeps going up then 150 a barrel is next.

  • George Labrador George Labrador on Feb 20, 2008

    This is bad news for all of us, it not only affects Vehicles but also Homes heated with Oil, like many in rural areas! Natural Gas wont be far behind either, today Gasoline here in Ontario ranges from $1.06 per litre Canadian dollar to a high of 1.19 per litre. This is caused by Speculators in my opinion but I do think the days of "cheap Oil" are well behind us.

  • Gsp Gsp on Feb 20, 2008

    Expensive oil is good. Also, we should (like I keep saying) tax it more as well. Ground source heat pumps can heat rural homes cheaply. These will become more common. Because of BTU/pound efficiency, we should keep oil for cars, and better yet , airplanes. Using it to heat homes is a waste.

  • Stein X Leikanger Stein X Leikanger on Feb 20, 2008

    I've seen studies that have looked at the alternative cost of not having oil around, in the future, for all the things we'll miss when we're through burning it all up in IC engines. $129.04 is cheap in comparison. The fact that the price of oil is finally rising to more realistic levels will drive us towards exploring alternatives more effectively, including reducing the cost of heating and lighting/driving the technology in our homes. About time.