Oil price reaches record high
Concerns that China will need to import more fuel to help with reconstruction after this week's earthquake have helped push the price of oil to a record high.
In addition, Saudi Arabia, the world's largest oil producer, has said it does not see a need to increase oil production.
NEW YORK (AP) — Oil prices surged more than $3 Friday, shattering a previous record in a spike near $128 a barrel, as prices at the pump pushed to new highs of their own.
The gains come 10 days before the Memorial Day holiday, the traditional start of the peak U.S. summer driving season, suggesting that retail gas prices have further to rise.
Americans are now paying a national average of $3.787 a gallon for regular gasoline, up nearly a penny from the previous day, according to AAA and the Oil Price Information Service.
Diesel prices also have risen to record levels, meaning that even Americans who don't drive will likely face even higher prices on all sorts of goods because of increased shipping costs. A gallon of diesel now sells for $4.482 a gallon.
Light, sweet crude for June delivery rose as high as $127.82 a barrel on the New York Mercantile Exchange, before easing somewhat to trade up $2.64 to $126.76 . The contract settled at $124.12 Thursday.
Oil prices could rise even higher as U.S. demand picks up during the summer months, when gasoline consumption is typically the heaviest.
Still, Saudi Arabia, the world's largest oil producer, does not see enough demand from customers to increase oil production, the White House said Friday morning. President Bush was in the oil-rich Gulf kingdom in part to lobby for an increase in crude output.
Also pushing oil prices up were speculation that China's demand for diesel needed to fuel its power plants would rise due to reconstruction efforts after this week's earthquakes and an upward revision of an oil price forecast by investment bank Goldman Sachs from $107 to $141 a barrel for the second half of the year.
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May 16, 2008 at 01:30 pm by Rachel Nixon, 1673 views, 41 comments
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Add a comment
Comments (41)
at 13:37 on May 16th, 2008
Rachel Nixon, I like this story. It's good stuff.
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harmony2101at 00:11 on May 17th, 2008
Wow, yeah I had heard about this... I geuss we all hope that it will level out eventualy. However, with money and oil hungry men in power, and no effective change in the manufacturing of cars and other vehicles and equipment that needs gas and oil... it's going to be a long expensive road ahead of us all! Our government needs to look into real cost and eco friendly ways of making sure America is no longer dependant on oil or we are always going to be fighting this oil war!
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f64azat 00:18 on May 17th, 2008
Wish gas prices were the same as my friend’s old pump .29¢ per gallon. Wow wouldn’t that be nice! Antique pump located in Tucson, AZ.
f64az has contributed a photo to this story.
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cypress.branchesat 00:33 on May 17th, 2008
For the past three weeks my husband and I have been on a road trip in the four corners region. The highest gas price we saw was $3.99 a gallon (for unleaded). This was definitely price gouging because it was the only gas station for miles. But overall the gas prices were all outrageously high.
cypress.branches has contributed a photo to this story.
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Sheila Cunninghamat 02:43 on May 17th, 2008
This was my first time to break the $50 mark on a fill up. Unfortunately, this may become the norm.
Sheila Cunningham has contributed a photo to this story.
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jirainesat 03:12 on May 17th, 2008
jiraines has contributed a photo to this story.
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jirainesat 03:15 on May 17th, 2008
Had to fill up on the way to work. Taken at the Kroger on Mason - Montgomery Road in Mason, OH.
When I got my car in 2003, I could fill up for $13.
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Shana Roseat 03:22 on May 17th, 2008
this is actually a really old picture...gas is now $4.28 and rising on maui!
Shana Rose has contributed a photo to this story.
at 03:38 on May 17th, 2008
Rachel Nixon, I like this story. It's good stuff.
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kerimoff2000at 06:12 on May 17th, 2008
Signs of things to come: $4.27 9/10 a gallon (in Death Valley) seems expensive for gas in California, but back home in Switzerland we're paying over $6.50, and it's over $8 in parts of France.
kerimoff2000 has contributed a photo to this story.
at 06:27 on May 17th, 2008
In the UK, 111.9p per litre equates to approx $10 per gallon! In remote areas, eg Scottish Highlands and Islands, its up to 125.9p per litre. Most of this is tax imposed by the UK Government.
at 08:49 on May 17th, 2008
Rachel Nixon, I like this story. It's good stuff.
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rainhammersat 08:53 on May 17th, 2008
vigilante.
rainhammers has contributed a photo to this story.
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Blackhorse17at 09:29 on May 17th, 2008
This picture was taken in march. Prices have continued to rise and this station is still leading the pack for the highest prices in the little town of Mt. Home, AR
Blackhorse17 has contributed a photo to this story.
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TonyOlsenat 09:37 on May 17th, 2008
I saw an abandoned service station and thought the pumps looked like alien robots. Just had to shoot it.
Hope you enjoy them.
Tony
TonyOlsen has contributed a photo to this story.
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jake bluesat 10:19 on May 17th, 2008
With prices at the pumps reaching record highs, all the pumps will be good for are decorations
jake blues has contributed a photo to this story.
at 11:02 on May 17th, 2008
I took this back in mid-March, before prices in much of California reached $3.50/gallon. We were passing thru Lee Vining and prices this high were quite a shock
scrapping61 has contributed a photo to this story.
at 11:14 on May 17th, 2008
This gas price is getting out of hand. You can barely afford to even drive to work anymore. Im spending nearly $400 a month in gas.
Dustin Matthews has contributed a photo to this story.
at 11:51 on May 17th, 2008
Nice article, however, you forgot to mention one major cause of ever-increasing gas prices: the taxes we pay per gallon of gasoline. California has one of the highest taxes on gas..."For the first quarter of 2008, the average state gasoline tax is 28.6
cents per gallon, plus 18.4 cents per gallon federal tax making the
total 47 cents per gallon," (http://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States).
Taxes are only one cause of the higher prices. What about all the restrictions on refining? Those drive prices up as well. So without the state and federal taxes, our gas would be a lot less expensive.
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Punk Rock Momat 11:55 on May 17th, 2008
I pass this gas station everyday on my way to work and over the past 4 years I have watched these numbers get higher and higher and it scares me to think what they will be in another 4 years.
Punk Rock Mom has contributed a photo to this story.
at 14:05 on May 17th, 2008
I work all over in the area where I live and although I get a small mileage compensation, it comes nowhere even near to what I'm spending. It's totally ridiculous for gas to be this high and I have had to minimize my driving significantly.
at 15:02 on May 17th, 2008
So the Saudi Princes are giving it back to Bush as punishment for attacking Iraq.. Bush thinks he's fixing it all by using corn to make gas substitutes but the chain reaction to that is now milk has gone from 2.50 a gal to 4.50 a gal. It's time to listen to the 'crazy' people who turn magnets into electricity as well as solar and hydro energy companies. This can end our dependence on oil. Oh yea, by the way Canada - just wait till the US Oil companies take over Hydro Quebec.. your 1.40 a liter ca/dollar will be a pleasant memory.
CBGB_Hoser has contributed a photo to this story.
at 15:53 on May 17th, 2008
While going on a small trip to Death Valley, CA I was amazed when i saw this outrageous gas price.
UnKnownViper has contributed a photo to this story.
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xxxJulesat 16:35 on May 17th, 2008
Typical Japanese gas station. Note gas pumps/hoses suspended from above to save space in a city environment, and attendabts to save time in refuelling.
Gas prices in Japan are ca 30% cheaper than they are in the European Union.
Why? Ask the our politicians.
xxxJules has contributed a photo to this story.
at 17:04 on May 17th, 2008
www.freegasgonewild.com is setting a World Record with a goal of giving away $10 Million in FREE GAS!! We need sponsors! Join us and Together we WILL make history! robert@freegasgonewild.com
Free Gas Hunter has contributed a photo to this story.
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JohnNeeseat 17:05 on May 17th, 2008
My first $100 fill up would have been worse if the gas pump credit limit was higher. I have the unfortunate requirement of driving a full-size pickup as a part of my job, and must, quite simply, just deal with it. My sympathy really goes out to the guys (and gals) who drive the big rigs, the tractor-trailers, the semis who haul freight all over the nation. $100 wouldn't get them enough diesel to drive across town, much less across the state or country.
JohnNeese has contributed a photo to this story.
at 17:16 on May 17th, 2008
Just launched www.freegasgonewild.com . Attempting World Record Gas Giveaway! We need Business sponsors in every State. High gas prices are really hurting millions of people and if we join together we can help! Go to the site for info. or e-mail, robert@freegasgonewild.com .
If you are in business for yourself you should get involved with this mission. We are going to set a World Record, and when freegasgonewild.com gets Publicity...so do you!!
Now, Let's make History!!!
at 17:40 on May 17th, 2008
I remember this well---the first time I paid over 3 bucks a gallon!! This was taken on the New York State Thruway (I-90) in October of 2007.
Peachhead has contributed a photo to this story.
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unionwhoreat 18:52 on May 17th, 2008
High prices at the pump are a painful symptom of a much more serious problem that looms on the horizon. Global peak oil demand is expected to occur in the next ten years or so, after that oil demand outpaces oil supply, and we lose the ability to power our public infrastructure. Think about the implications. Grocery stores get food delivered by trucks and trains that use deisel fuel, coal fired power plants get coal via deisel powered trains, Nukes and hydro plants need people staffing them 24/7 to operate safely, if their employees can't get to work, they shut down.
Do you know how to grow your own food, or make your own clothes? Modern life is full of convenience provided by oil, life after oil, not so convenient.
unionwhore has contributed a photo to this story.
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gscat 20:39 on May 17th, 2008
Maybe it is time for our government to think about efficient national public transportation. Although FDR was the first to envision an interstate highway system as a means of creating jobs, it was President Eisenhower who created the Federal-Aid Highway Act in 1956 to actually develop the system. The commitment was made and we have an interstate highway system. A commitment could be made to convert a part of the system to public transportation. Public transportation would help curb global warming and reduce the high need for oil.