The train conductor on the downtown bound 3 train said, “Ladies and gentlemen, the price of crude oil is over $99 per barrel. Please continue to use the New York mass transit system”. People smiled, some chuckled, and I was like “really!!?” Yes, really. Oil has gone up to over $99 per barrel. Analysts are even projecting that it would hit a $100 and beyond. I bet execs at Southwest Airlines are doing the Macarena right about now.
But seriously though, isn’t this crazy? According to Forbes, Crude oil prices rose to a new record above $99 a barrel and it was catalyzed by two major reasons; 1) worries about inadequate supplies as the Northern Hemisphere enters winter 2) news of refinery problems. Gas prices have already gone up as a result and I only expect that would apply to heating oil prices as well. Meanwhile, Exxon Mobil has signed a deal to explore for oil and natural gas in Libya. O well, o well, o well – I’m beginning to question the possibility of untapped oil out there.