Sunday, November 02, 2008

Saturday, September 13, 2008

High Oil Prices Not Due To Shortage




As I post this story....local gas prices only 60 miles away hit $5 a gallon......



Shell CEO: High Oil Prices Not Due To Shortage

By Karen Noack

LONDON (Reuters) - Oil prices at a record high above $135 a barrel are rising due to market sentiment rather than a shortage of supply, Royal Dutch Shell's chief executive Jeroen van der Veer said on Thursday.

U.S. crude oil hit an all-time peak on Thursday, climbing to $135.09, lifted by concern about long-term supply and a host of predictions of further rises from influential investment banks and investors.

"This that what happens in the markets now is a real surprise to us as well because what we say and what we see is there are no physical shortages," Shell's Jeroen van der Veer told Reuters television. He runs the world's second-largest fully publicly traded oil firm by market value.

"There are no tankers waiting in the Middle East, there are no cars waiting at gasoline stations because they are out of stock. This has to do with psychology in the markets and you cannot forecast psychology".

His view that there are no shortages chimes with that of other oil producers, such as members of the Organization of the Petroleum Exporting Countries.

http://uk.reuters.com/article/oilRpt/idUKL2232289720080522?sp=true