04/24/06 BALTIMORE, MD – Speculation over Iran’s nuclear goals, along with the possibility of outflow disruption from OPEC’s fourth largest oil producer, has pushed the price of crude to record highs. Crude oil futures for June reached a record high of $75 a barrel on Friday, and one commodities expert believes that this price will be considered low, once consumers realize what the future has in store for crude.
“Several major disruptions are driving us toward the $100-a-barrel level and $5 – or more – for gasoline,†said Kevin Kerr, commodities expert and frequent contributor to The Daily Reckoning. “These skyrocketing prices could be caused by Iran, OPEC, refinery shutdowns, hurricanes, Venezuela, or possibly all of these factors combined. The longer consumers deny the fact that $28-a-barrel oil will not be seen again, the harder it will be when they fill up their gas tank.â€
Although the United States is not in the peak summer driving, or hurricane season yet, drivers will be feeling the pinch at the pump. One of the major factors influencing the rise in prices is the concern over supply disruptions. Recent rebel attacks in Nigeria, which is Africa’s biggest oil producer, have shut down about 20 percent of output.
“Africa will remain a big focus for the oil market. These consistent attacks on Nigerian pipelines that are operated by foreign companies worry traders a great deal,†says Kerr. “The Nigerian rebels are warning companies to get out now while it’s still safe. Can they be more direct than that? Does $100 oil really sound that far fetched now?â€
Kevin Kerr’s expertise in futures and commodities has made him a regular contributor to news outlets like CNN fn, CNBC and MarketWatch, where he’s been quoted in over 500 articles. With 15 years of experience, and his own trading service, Resource Trader Alert, Kevin Kerr is a true veteran of the commodities markets dealing with everything from cotton and currencies, to oil and natural gas.
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Reminds me of Malcolm X saying the chickens have come home to roost. Too long has this so-called “American love affair with the car” been like so many real love affairs — ignoring the signs all around oneself that things aren’t as dreamily romantic as imagined and thus letting them fall apart. Big SUVs and other inefficient cars, little public transportation and car pooling, small investment in alternative sources, and even the very cheapness of gas in comparison to other countries show how very unserious we have been about keeping the love alive. Now comes the part where we sing, “My baby done-done me wrong.” Too bad there’s no Dr. Phil for getting our hearts torn out at the pump.
It just makes you wonder not ‘if’ prices for oil will keep rising, but ‘when’. How high will costs need to go before people really start to change their consumption habits? The sad part is it will probably be too late before the nation realizes that a change is needed. Everyone ready to start riding their bikes to work?