As if Middle East concerns are already enough to send the price of oil spiraling, it was announced today by BP, one of the top three oil producing firms, they are shutting down their Alaskan plan "indefinetely." What is this going to do to gas prices and more importantly my wallet? A senior analyst at BP says:
"This latest setback to global oil production comes in the context of a relatively tight oil market," analysts at BNP Paribas said in a research note.
"In this environment we maintain our forecast for Brent crude of $77 a barrel this quarter, and so implicitly expect prices to move above $80 a barrel at some point this quarter."
In other words....ouch! I'm already a little on edge after watching Syriana over the weekend. The end of the summer could only get worse before it gets better too. Take into account the escalating tensions in the Mideast, coupled with an approaching hurricane season and summer driving, I wouldn't be suprised if oil spiked well aboe $80 before winter comes.
Hmmm....riding a bike to work seems temtping.
Update: It's already noon and oil has reached $77 per barrel. Here it comes....
Monday, August 07, 2006
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