Peak Oil Update: Oil Prices Hit $80 for First Time Ever

In a strong indication that the traders in the oil market see both supply shortfalls as well as weather and terrorist-related dangers to oil infrastructure, oil prices spiked over a dollar a barrel today. The intraday trading of $80.00 a barrel represents a price record and comes as a surprise, given yesterday's important OPEC announcement of an increase in output of 500,000 a day.

Tropical Depression Humberto in the Atlanta gained strength today and according to CNN, may be targeting Louisiana and Texas, home to many of America's oil refineries. Additionally, growing terrorist threats in key oil producing countries such as Nigeria and Saudi Arabia are generally thought to be baked into the new oil price highs.

In August, Saudi Arabia announced plans to increase the number of personnel protecting their oil infrastructure from the current 5,000 to a total of 35,000. Typically, price increases on the global market result in increases that consumers pay at the pump.

Also Read:
Peak Oil What It Matters And What We Can Do About It
Terrorism Comes to Mexican Oil and Gas Pipelines
OPEC and Peak Oil: Global Warming Ain't the Only Reason To Go Green

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