Larry,
I think we will start seeing a lot more force majeure declarations in the near future.
There has been a rumor circulating for about a week or two, that Enron is unable to fulfill a lot of their gas commitments and will be declaring a force majeure on a lot of their contracts.
I am only aware of one major suit that has been filed in the last few weeks, but I am sure that a lot of others will follow.
Oil getting tighter!!
Gas getting tighter!!!
For those who are fully invested, days like yesterday and possibly today are days to be selling not buying.
Jim
Oil Races to 10-Year High on Supply Worry
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REUTERS INDEX | INTERNATIONAL | BUSINESS | TECHNOLOGY
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Filed at 6:18 a.m. ET
By Reuters
LONDON (Reuters) - Oil prices raced to 10-year highs Tuesday on worries about low U.S. petroleum inventories and frank talk by top exporter Venezuela about OPEC's thirst for petrodollars.
Brent crude oil futures on the International Petroleum Exchange (IPE) pushed 78 cents or 2.4 percent higher to $32.26, above a previous peak of $31.95 hit on March 7, at that time the highest level since 1990.
The benchmark North Sea crude has risen by a fifth since August 1 on worries about low oil inventories in the United States, the world's largest energy market.
Another spur for the market has been tough talk by OPEC's Venezuela about the need for members of the Organization of the Petroleum Exporting Countries to earn enough money from oil at current prices to develop their economies.
The grouping pumps most internationally traded oil.
Steep gains on gas oil, a category of petroleum that includes heating oil and diesel, have also boosted crude. Gas oil hit post-Gulf War highs on the IPE last week.
Statistics released by the American Petroleum Institute, an industry group, have indicated heavy draws in stocks in the last few weeks to the lowest levels in 24 years and has underpinned much of the recent price rally.
The latest batch of weekly API numbers for U.S. crude and refined products will be released after the close of dealings on Tuesday.
The two-week bull market has so far refused to be tamed, shrugging off news Monday that U.S. Energy Secretary Bill Richardson, in a meeting with oil analysts last week, had again raised the topic of opening the Strategic Petroleum Reserve (SPR) in order to cool off sizzling prices.
Richardson discussed option for release SPR oil but the spirit of the meeting did not suggest a release was imminent, said one analyst who was at the meeting. |
