Wednesday, September 06, 2006

Oil Prices Rise to Over $70 a Barrel: BBB Archives, 4/18/06

April 18, 2006--Oil futures prices reached a record on Monday, hitting above $70 a barrel. The rise was attributed to concerns over Iran's nuclear program and production shortages in Nigeria, reported the Associated Press.
The prices for crude oil for May delivery rose $1.08 to more than $70 a barrel. This was the highest level since the contracts was introduced on the exchange in March 1983, said a report in the NY Times. The last time prices reached close to this level was an intraday high of $70.85 a barrel on Aug. 30, just after Hurricane Katrina shut down production in the Gulf of Mexico, said the report.
This news is important to cyclists because it reinforces their choice to ride to work, play or for travel. But the world is hardly listening. Motorized traffic is at an all time high. In a report by National Public Radio, they noted that consumers’ demand for gasoline did shrink a bit last fall when prices briefly topped $3 a gallon, but the conservation effort was short-lived.
"We’re not seeing an adjustment in the amount of gasoline consumed," said Geoff Sundstrom, a spokesman for the American Automobile Association. "I think where we are seeing a change in behavior is in consumer preference for the types of vehicles they’re buying. It seems as though consumers are clearly shifting away from larger SUVs and passenger cars to those that are more fuel-efficient."

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