Oil reaches $91

Energy independence, anyone?  Crude oil prices reached a record high on Friday, following the announcement yesterday of new economic sanctions on Iran:

Crude oil rose to a record above $91a barrel in New York on an unexpected drop in U.S. stockpilesand concern that supply from the Middle East may be disrupted.

Inventories last week fell 5.29 million barrels to thelowest since January, the U.S. Energy Department said. New U.S.sanctions against Iran, warnings of a Turkish assault on Kurdishmilitants in Iraq and a falling dollar helped push priceshigher. Brent futures in London reached a record.

The U.S. economy is on the verge of a train wreck.  The weak housing market, depreciated dollar and our over-dependence on oil could indicate a recession is on the horizon.

Comments

[crshedd]

so, let me see if i have this right.

oil companies have NOT been buying this higher priced crude (thus reducing inventories), therefore, the stuff in the pipeline is cheaper crude, but my local stations keep raising their prices because the cost of oil is going up? did i miss something?

[Dr. Troy Camplin]

All we have to do is let the free markets work, and as the price of oil goes up, energy independence will be right around the corner. We just need to get the government to stop subsidizing everything in sight for their own political gain.