A discussion about the airline industry, airline employees, and all things related

For the first time in history oil hit $80 per barrel.  The government cited a surprisingly large drop in crude oil inventories and declines in gasoline supplies and refinery activity. 

The Energy Department's Energy Information Administration said that oil supplies are tightening even as demand remains high.  This comes even as OPEC agreed to raise their production by 500,000 barrels a day later this fall. 

Another factor might include the approaching tropical storm off the Texas and Louisiana coastline.  Oil is still well below the highs adjusted for inflation set back in the 1970’s and 1980’s. 

"This is a market that wants to run up on the slightest bit of information," said Jim Ritterbusch, president of Ritterbusch & Associates.

Oil prices might continue to rise if the hurricane season becomes worse and/or the winter months are harsh and the demand for heating oil is relatively high. 

KSDK.com 

Price of Oil