Web Site Error Sparks Increase in Oil Prices

The story below backs up what I have said on the show time and time again, it is the oil futures market that governs the price of oil....

World oil prices jumped briefly on Wednesday after a television station in Tulsa, Oklahoma--the No. 62 U.S. media market--posted an erroneous story about a refinery fire on its Web site.

At 10:14 EDT, CBS affiliate KOTV reported that a lightning strike had caused a fire at an Oklahoma refinery--sparking a flurry of excitement among energy traders and boosting U.S. crude prices 40 cents.

The refining company announced the story was "completely wrong" and the station withdrew the story.

"All it takes is a screw-up on a Web site to move the market. It just goes to show how tense this market is,"

said a Houston-based oil trader.

A string of refinery problems in the United States has propelled retail gasoline prices to record highs in recent weeks.

Talk Show America 5/31/2007