Oil Rises Above $89

The breaking point has been reached... most European countries cannot continue their normall business with the dollar and Euro at their present rates...

The spiral of the oil prices is a daily happening, everyday the market news is worse, now crude oil rose above $89 a barrel in New York for the first time after the U.S. dollar declined to a record low against the euro, enhancing the appeal of commodities as an investment.

Can the U.S. economy show signs of rising if the Federal Reserve cut borrowing costs ? NO... not as long as concerns that Turkey will use military force against Kurdish rebels in northern Iraq, a step that the U.S. says may damage Iraqi security and disrupt oil supplies,
Crude oil for November delivery rose to $89.46 on the New York Mercantile Exchange. Futures reached $89.56, the highest price since trading began in 1983. Prices are up 55 percent from a year ago.

Brent crude oil for December settlement rose to $84.61 a barrel on the London-based ICE Futures Europe exchange.
This will meam that soon in Europe as in other continents the final consumer price will also reach new values sending already fragil economies further into

the red zone...

Middle East

The Middle East has been a sensitive region, conflicts, wars, religion... now all these tensions are to blame for inflating the price of crude... Talk of war in the world’s most unstable region can inflate a hefty “war premium” into each barrel of OPEC oil. In the Middle East, wars seem to break-out every few years, and a pause in the fighting are often just a timeout, in order to re-supply and prepare for the next round of fighting.

If one wants to point the “finger of blame” at the biggest culprit, not the only culprit, but the biggest, behind the historic rise in crude oil prices, it’s no other than Federal Reserve chief Ben “B-52” Bernanke, whose decision to bail-out Wall Street brokers and banks this past summer, by slashing short-term interest rates, set in motion another US dollar devaluation, and sent global oil prices and gold sharply higher.

The Fed is the guardian of the world’s top reserve currency, and has a responsibility to defend the purchasing power of the greenback, and keep global inflation in check. But when push comes to shove, the Fed is providing strong support for the crude oil and gold market.
Whenever the stock market has a bad day, reporters from the mainstream media try to find plausible explanation, for why the market turned south. This week, the surge in crude oil prices above $87 per barrel was widely blamed for the market’s sudden tremors...and now to add to the critical situation we have the Turkey/Iran affair.....

WHAT THE WORLD NEEDS IS A ALTERNATIVE ENERGY SOURCE, LETS ALL PUSH FOR A DIFFERENT ENERGY SOURCE...LET THIS OBJECTIVE BECOME ALIVE...ITS FOR THE GOOD OF ALL...

Turkey challange

The world crude situation faces another challange in that crude oil rose to a record $84.05 a barrel in New York last week Oct. 12/07 on concern Turkey may seek to quell Kurdish rebels by invading northern Iraq, a country with the world's third-largest oil reserves.
Turkish Prime Minister Tayyip Erdogan told reporters his country would pursue the Kurdistan Workers Party, regardless of diplomatic costs, according to an Agence France-Presse report. Northern Iraq holds some of the country's largest oil fields, including Kirkuk, the source of much of Iraq's exports.
Lets hope this situation will not have any possibility of affecting crude supply.
Crude oil for November delivery rose to close at $83.69 a barrel at 2:50 p.m. on the New York Mercantile Exchange, a record settlement. Earlier, the contract touched $84.05, the highest since futures began trading in 1983.
Brent crude oil for November closed at a record $80.55 a barrel on the London- based ICE Futures Europe exchange.
Turkey's government will present a bill to parliament today authorizing a possible incursion across the border within a year.. Turkey said this week it would launch a crackdown on the Kurdistan Workers Party, or PKK, after rebels killed 15 soldiers in southeastern Turkey.
Saudi Arabia has the world's largest reserves of crude, followed by Iran and Iraq.According to estimates Iraq produced 2.075 million barrels of crude oil a day in September.
So lets wait and see the outcome of this situation, all we can do is use less fuel and in this way force the petrol companies to lower their consumer prices.

C.E.O

The CEO of Galp Energia Portugals biggest Petrol company and one of the biggest companies in this country said in a parliment session that the final consumer price per litre is cheaper than in Spain.! (Spain is the country next to Portugal)

The consumers should take into account the discounts at the petrol stations... this statement can only be considered ridiculous, two or three cents per litre in some petrol stations! Very few petrol stations practice any type of discounts, any real discount...

This CEO goes on to say that due to these discounts tha petrol price in Portugal are in fact cheaper than in Spain...then he should explain to the public in general why we have diesel 10 cents more expensive than in Spain and petrol 30 cents more expensive...!

Portugal has one of the most expensive consumer price per litre in the world ... its not the consumers fault that the goverment places high taxes on this type of fuel, its up to the petrol companies such as Galp to force the govermnet to change its policy...but no...the petrol companies all they see is profits...the more expensive the better.
They all practice the same prices , if one increases the consumer price a cent more, then all other petrol companies also increase their final price... this practice has been in use for years,everyone has knowledge of this practice but the CEO of Galp Energia denies this practice ... the deniel only proves the information is correct.
These companies have no respect for the consumer, their objective is money money...