Oil Closes Above $80 For First Time On Record - AP/Yahoo

[hatrack]

NEW YORK - Oil prices finished above $80 a barrel for the first time Thursday and gasoline prices rose as refiners reported production problems after Hurricane Humberto hit Texas.

Oil first traded over $80 a barrel on Wednesday after the Energy Department reported declines in crude and gasoline inventories and a drop in refinery activity, but ended the day below that psychologically important mark.

On Thursday, the October contract for light, sweet crude finished at a record $80.09, up 18 cents on the New York Mercantile Exchange and above the previous record close set a day earlier of $79.91. Despite the gains, oil is still well below inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today.

On Thursday, Humberto added to the supply concerns by cutting power to several refineries in the Port Arthur, Texas, area. Humberto later lost strength and was downgraded to a tropical storm. Another tropical system gaining strength in the Atlantic also supported prices. (Ed. - emphasis added)

EDIT

http://news.yahoo.com/s/ap/20070913/ap_on_bi_ge/oil_prices_110;_ylt=AoqfYYGTUChNrir8bJqUdKCAsnsA

[bananas]

1. "oil is still well below inflation-adjusted highs hit in early 1980"

"Despite the gains, oil is still well below inflation-adjusted highs hit in early 1980. Depending on the adjustment, a $38 barrel of oil in 1980 would be worth $96 to $101 or more today."

[louis-t]

2. Mission Accomplished.

Sigh.

[Javaman]

3. Sooooo...

if oil is at 80 bucks a gallon why isn't it roughly $3.50 at the pump like it was a couple of years ago?