Oil price increases of 2004 and 2005

Oil price in 2003-2005 Average US retail price of regular unleaded gasoline Oil prices from 1860-1999 in 1999 dollars. Source: [1]

The price of standard crude oil on NYMEX was under $25/barrel in September 2003. By August 11, 2005, the price had been above $60/barrel for over a week and a half. A record price of $70.85 per barrel was reached on August 29, 2005.[2] While oil prices are considerably higher than a year ago, they are still roughly 25$ from exceeding the inflation-adjusted "peak of the 1980 shock, when prices were over $90 a barrel in today’s prices" [3].

In the United States gasoline prices reached an all time high during the first week of September 2005 in the aftermath of Hurricane Katrina. The average retail price was nearly $3.04 per gallon. The previous high was $2.38 per gallon in March 1981, which would be $3.03 per gallon after adjusted for inflation.[4][5]

Demand

High demand is led by the U.S. market, the source of an increasing percentage of the world's demand for petroleum. The U.S. economy currently accounts for one-quarter of all demand. New demand is also coming from emerging industry in third world nations, including India and especially China which is developing a western-style car culture and whose manufacturing bases have grown very rapidly in recent years.

Sources of the world-consumption-increase in 2004 compared to 2003 (total increase of 3.4%), according to U.S. Department of Energy Energy Information Administration estimates: [6]

  • China: 38.9%
  • US: 19.4%
  • Asia outside Japan and China: 13.8%
  • Canada: 4%
  • UK: 3.5%
  • combined other non-OECD: 21%

Note: the total percentage exceeds 100 because the overall demand from all other countries decreased during the same period..

Supply


There are a number of reasons why oil traders feel that oil supplies might be reduced. One of the most important is growing turbulence in the Middle East, the world's largest oil producing region. The war in Iraq, Iran's nuclear program, and questions about Saudi Arabia's internal stability all could in the future lead to a dramatic fall in the supply of oil. Outside the Middle East other oil producers have worried investors such as the strikes political problems in Venezuela and potential instability in West Africa.

In late August, 2005, Hurricane Katrina crippled the supply-flow from off-shore rigs in the Gulf Coast, the largest source of oil for the domestic U.S. market. Short-term shutdowns because of power outages knocked out two major on-shore pipelines, and at least 10% of the nation's refining capacity was not operating in the wake of the storm. Gas prices in the region, normally 70 cents below the national average, were at $3.12 on August 30.[7]

World supply (specification) came in at 83 million barrels a day during 2004 in department of energy EIA calculations ([8]). This rate of increase is faster than that of any other date in the past. Despite this there is increasing discussion of peak oil and the possibility that the future may see a reduced supply of oil. Even if oil supplies themselves are not reduced, some experts feel the easily accessible sources of light sweet crude are almost exhausted and in the future the world will depend on more expensive sources of oil.

The short term price of oil is partially controlled by the OPEC cartel and the oligopoly of major oil companies. One other important cause is the United States dollar's slump against the Euro. Since oil is traded in dollars, the price must increase for OPEC to maintain buying power in Europe.

Causes

Some people and news agencies argue that labor strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other general problems are responsible for the higher gas prices. Critics argue that these problems periodically push price higher, but that they are not fundamental or long term enough to cause the large jump in gas price. A more fundamental problem that some believe is causing the price to rise is the probability of peak oil already or soon to be reached. Not only is there a limited amount of fossil fuels which have been burnt as fuel, but however much remains will be used faster by a growing industrialized world population and what remains will be more dificult to get since the easiest wells have been tapped and the remaining sources will be fought over in resource wars.

Others believe that the price of oil is almost entirely speculative, and that the increase in price is due to oil speculation extending into the long term. These people argue that speculators foresee increasing demand, decreasing supply, or both, leading to a long term increase in the price of oil. If these speculators are wrong, current prices may actually be a price bubble, and the price could thus collapse. A July 14, 2005 Morgan Stanley report[9] suggests that opinions of the oil market could burst just like a bubble if indications of declining Asian demand continue.

Still others suggest that the main issue is a lack of energy efficiency in industry. These analysts believe the problem would be solved by increasing the efficiency of factories, homes and transportation and easing the demand crunch by using less energy and more renewable energy.

Spring & Summer 2005 increase

Overnight gas price hike shown at a Chicago area bp station (background). The Shell station (foreground) has not yet posted the 12 cent price hike.

After retreating for several months during the winter of 2004/2005, prices rose to new highs in March 2005. The price of light, sweet crude oil on NYMEX has been above $50/barrel since March 5, 2005. On March 16, 2005, the price surpassed the October 2004 high of $55.17 to close at $56.46. In April 2005 the price began to fall, reaching $53.32 on April 9. It then reversed course and headed to an all time high of $58.28, driven mainly by lingering concerns of a prolonged weak dollar. In June 2005 crude oil prices surged to record highs eventually breaking the psychological barrier of $60.

Saudi Arabian King Fahd's death on August 1, 2005, meant a new regime that may be less amicable to U.S. influence. During mid-August, with a string of refinery snags (fires/other deterrents to oil refining), shrinking gasoline inventories, and a growing thirst for oil by American consumers, New York Mercantile Exchange traded crude oil futures surged past the $66 mark and briefly touched $67/barrel. Over the course of three weeks leading up to August 10, crude oil prices had risen by 13%.

While the street price of gasoline usually corresponds to the price of crude oil, refinery capacity can become the governing factor, particularly during periods of high demand. In addition, there are different grades of oil and each refinery is typically configured to process a narrow range of grades. As a result, shortage of a particular grade of oil can keep street prices high, even when overall supply exceeds demand.

Winter 2006 increase

On January 17, sweet crude oil for February delivery rose by $2.38 (3.7%) to $66.30 a barrel. This was the highest increase since early October 2005. Observers believe that violence in Nigeria, and Iran's friction with the West are responsible for this price increase. Continued concerns about Iran raised the price to $68.38 on January 31.[10]

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Hurricane Katrina

Gas price hike shown at a Shell station.

Hurricane Katrina had a major impact on oil and gas prices, especially within the United States. The Gulf Coast is home to a major portion of America's refining capacity. The port of Louisiana is one of its most important inlet for oil imports, and the gulf itself is a major oil producer. Port Fourchon has also suffered long term damage. Louisiana Offshore Oil Port has not. [11]

Gas prices soared after the closing down of the major pipelines connecting the gas of the Louisiana region to the entire East Coast. In Stockbridge, Georgia, regular gas prices came to $5.87 at a BP station. Shortages were feared or experienced in several states including Tennessee [12], Alabama [13], and South Carolina. [14] Many of these were blamed on panic buying. Airports began to report shortages in aviation fuel on 2 September.[15] A shortage could lead to a decrease in food production.[16] Higher prices for heating oil and natural gas were expected as the winter heating season set in.[17]

On 5:10 p.m. EDT, on 31 August, President Bush announced the Energy Department was approving loans from the Strategic Petroleum Reserve and that EPA announced nationwide waver on fuel blends. Bush stated, "This storm has disrupted the ability to make gasoline and deliver gasoline," and "This is going to be a difficult road."[18] Many people have observed however that stores of crude oil do little to address inadequate refinery and distribution capacity.

In order to stabilize world energy supplies, the International Energy Agency offered to sell two million barrels of crude oil and other refined products from national supplies. These supplies would begin entering the US markets within two weeks of 2 September. [19] [20] The press release from the IEA states, "... the implications for the oil market are global."[21]

Effects

There is controversy regarding the potential effects of oil-price shocks. Some see these increases in the price of oil leading to a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash. Most economists see this as unlikely, partly because all developed countries have high fuel taxes that decrease as oil prices increase and can be eliminated in the event of a dramatic price spike. Nevertheless, that loss of revenue would put a strain on government balance sheets. The American Strategic Petroleum Reserve could on its own supply current U.S. demand for about a month in the event of an emergency, unless it is also destroyed in the emergency. This could well be the case if a major storm were to hit the gulf, where the reserve is located. While total consumption has increased [22], the western economies are less reliant on oil than they were twenty-five years ago, due to substantial growths in productivity. In the United States, for instance, each $1000 dollars in GDP required 2.4 barrels of oil in 1973 when adjusted for inflation this number had fallen to 1.15 by 2001. But oil's historically high ratio of Energy Returned on Energy Invested continues a significant decline. Despite the rapid increase in the price of oil, neither the stock markets nor the growth of the global economy have been noticeably affected. Inflation has increased. In the United States, the Consumer Price Index rose by 0.6% compared to 0.2% for September. This was driven by a 4.2% increase in energy costs. As a result during this period the Federal Reserve has rapidly been increasing interest rates to curb inflation.

Economists say that the substitution effect will spur demand for alternate energy sources, such as coal or liquified natural gas. For example, China and India are currently heavily investing in natural gas facilities. Nigeria is working on burning natural gas to produce electricity instead of simply flaring the gas. Outside the US, more than 50% of oil is consumed for stationary, non-transportation purposes such as electricity production where it is relatively easy to substitute natural gas for oil.

The increased price of oil also makes previously impractical sources of oil attractive to businesses. The most prominent example of this are the massive reserves of the Canadian tar sands. They are a far less cost efficient source of oil than crude, but at 60 dollars a barrel, the tar have recently become very attractive to businesses. Recent months have seen billions of dollars invested in the oil sands.

The increased price of oil might also encourage greater fuel efficiency. Recent years have seen a move towards more fuel-thirsty sport utility vehicles in the United States and Canada, and this may be stopped by the high price of gas. The September 2005 sales data for all the vehicles vendor indicated SUV sales dropped while small cars sales increased compared with 2004 sales. There is also an ever increasing market for hybrid vehicles since they are more fuel efficient; since the 1973 energy crisis, the front-wheel drive passenger car has replaced rear-wheel drive as the preferred layout for energy efficient cars. There is an increasing demand of crossover sport utilities which are more fuel efficient - especially for those based on passenger car platforms.

USA Stock markets

Three-year performance of the oil industry... ...and one-month performance.

The increase in oil prices over two years was mirrored by an increase in stock values in the energy sector. The value of the stock in companies such as Apache[23] and Conoco-Phillips [24] rose sharply during this period. These prices increased more rapidly toward the end of August, particularly after Hurricane Katrina. [25]

Wal-Mart shares continued their decrease in value that began with the increase in the oil prices. Over two years, stock in Wal-Mart dropped in value by 25% from $60 per share to under $45 per share. [26] Earlier in August, Wal-Mart announced that higher than expected oil prices cut into the corporation's profits for the 2nd quarter of 2005. Since oil prices after the end of the 2nd quarter continued to rise, 3rd quarter profits from Wal-Mart are expected to be small. Because Wal-Mart's distribution system relies on the customer to drive to a large discount big-box store, increases in the price of fuel might discourage some customers from making the trip as often. Wal-Mart, like all retailers, will also face higher shipping costs to get goods from the factory to the stores. This will likely cause inflationary pressures.

Asia Pacific Region (excludes Australasia)

The Pacific rim had been experiencing this crisis on an ongoing basis prior to Hurricane Katrina.

  • In the Philippines, the oil crisis caused its public to call for immediate government assistance. [27] New sources of energy were sought to deal with the crisis.[28]
  • A senior minister of Singapore expressed concern at the oil crisis in Indonesia.[29]
  • The Indonesian president had instituted subsidies to control the price of gasoline.[30]


Sub-Saharan Africa

High oil prices are hurting many countries in Africa, including Zimbabwe, Eritrea and Tanzania. High oil prices have created an oil supply instability, per barrel price instability or both. In some cases this has led to fuel rationing being enacted.

  • Many countries in Sub-Saharan Africa lack the foreign exchange reserves (ie, Dollars) to purchase enough oil products at the ever increasingly higher prices. These nations must resort to limiting imports or rationing their existing supplies.

Latin America & Caribbean

Venezuela's president, Hugo Chávez, came under increasing scrutiny as he began selling oil at lower-than-market prices to island nations in the Caribbean. [31]

  • At the same time, Cuba has experienced electricity shortages.

Gulf States & Eurasian Arab-Islamic Regions

Iran came under increasing pressure from the European Union in regard to their program to build nuclear power plants.[32]


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Iran came under increasing pressure from the European Union in regard to their program to build nuclear power plants.[32]. †Denotes wild-card team (since 1995).. [31]. Prior to 1924, the pattern generally had been to alternate, or to make other arrangements convenient to both clubs. Venezuela's president, Hugo Chávez, came under increasing scrutiny as he began selling oil at lower-than-market prices to island nations in the Caribbean. In 1925, Brooklyn owner Charles Ebbets convinced owners to adopt the current 2-3-2 system of scheduling World Series games (one team would host the first two games, the other team would host the next three, and the first team would host the last two if necessary; the leagues alternated which representative would host the first games), already used in the 1924 Series, as a permanent rule. In some cases this has led to fuel rationing being enacted. The list of post-season rules evolved over time.

High oil prices have created an oil supply instability, per barrel price instability or both. Most importantly, the now-official (and compulsory) World's Series match was to be operated strictly by the National Commission itself, not on the whims of individual teams. High oil prices are hurting many countries in Africa, including Zimbabwe, Eritrea and Tanzania. Receipts for later games were split among the two teams and the National Commission, the governing body for the sport, which was able to cover much of its annual operating expenses from World Series revenue.
. This was to discourage teams from throwing early games in order to prolong the series and make more money. The Pacific rim had been experiencing this crisis on an ongoing basis prior to Hurricane Katrina. One rule was that player shares would come from gate receipts from the first four games only.

This will likely cause inflationary pressures. During the winter of 1904/05, however, feeling the sting of press criticism, Brush saw the light and proposed what came to be known as the "Brush Rules", under which the series would be played over subsequent years. Wal-Mart, like all retailers, will also face higher shipping costs to get goods from the factory to the stores. Brush also cited the lack of rules under which the games would be played and how the money would be split. Because Wal-Mart's distribution system relies on the customer to drive to a large discount big-box store, increases in the price of fuel might discourage some customers from making the trip as often. Boston won on the last day of the season, but Brush stuck to his original decision. Since oil prices after the end of the 2nd quarter continued to rise, 3rd quarter profits from Wal-Mart are expected to be small. At the time of the announcement, their new cross-town rivals, the Highlanders, were leading the AL.

[26] Earlier in August, Wal-Mart announced that higher than expected oil prices cut into the corporation's profits for the 2nd quarter of 2005. Brush, refused to allow his team to play, citing the "inferiority" of the upstart American League. Over two years, stock in Wal-Mart dropped in value by 25% from $60 per share to under $45 per share. The Giants' owner, John T. Wal-Mart shares continued their decrease in value that began with the increase in the oil prices. The 1904 Series would have been between the AL's Boston Americans and the NL's New York Giants. [25]. It had been arranged well in advance by the owners of the respective teams, as both were league leaders by large margins.

These prices increased more rapidly toward the end of August, particularly after Hurricane Katrina. One of these series at the end of 1903 was a meeting between the two pennant winners and is known as the 1903 World Series. The value of the stock in companies such as Apache[23] and Conoco-Phillips [24] rose sharply during this period. These series were arranged by the individual teams, not by the leagues directly, the same as the 1880s World's Series matches had been. The increase in oil prices over two years was mirrored by an increase in stock values in the energy sector. After two years of bitter competition and player raiding, the National and American Leagues made peace and, as part of the accord, several pairs of teams squared off for interleague exhibition games after the 1903 regular season. There is an increasing demand of crossover sport utilities which are more fuel efficient - especially for those based on passenger car platforms. National League - American League.

There is also an ever increasing market for hybrid vehicles since they are more fuel efficient; since the 1973 energy crisis, the front-wheel drive passenger car has replaced rear-wheel drive as the preferred layout for energy efficient cars. National League. The September 2005 sales data for all the vehicles vendor indicated SUV sales dropped while small cars sales increased compared with 2004 sales. American Association. Recent years have seen a move towards more fuel-thirsty sport utility vehicles in the United States and Canada, and this may be stopped by the high price of gas. National League vs. The increased price of oil might also encourage greater fuel efficiency. National League.

Recent months have seen billions of dollars invested in the oil sands. National Association of Professional Baseball Players. They are a far less cost efficient source of oil than crude, but at 60 dollars a barrel, the tar have recently become very attractive to businesses. National Association of Baseball Players (Amateur -> Professional). The most prominent example of this are the massive reserves of the Canadian tar sands. The following are teams that played an earlier version of the "World's Championship Series" or otherwise claimed the national championship "Pennant". The increased price of oil also makes previously impractical sources of oil attractive to businesses. World Series Cricket was a short-lived but influential cricket competition.

Outside the US, more than 50% of oil is consumed for stationary, non-transportation purposes such as electricity production where it is relatively easy to substitute natural gas for oil. The term World Series has since been appropriated by other championships, such as the College World Series, the Little League World Series, the World Series of Golf, the World Series of Poker, the World Series of Birding and the World Series of Martial Arts. Nigeria is working on burning natural gas to produce electricity instead of simply flaring the gas. Commissioner Bud Selig, among others, has high hopes that this tournament could be as big as soccer's World Cup. For example, China and India are currently heavily investing in natural gas facilities. Many of the major baseball playing nations have committed to participating (the United States, Dominican Republic, Japan, Mexico, South Korea, etc.). Economists say that the substitution effect will spur demand for alternate energy sources, such as coal or liquified natural gas. Teams will be split into four groups of four and play a round robin schedule, with the top two teams from each group advancing to the next round.

As a result during this period the Federal Reserve has rapidly been increasing interest rates to curb inflation. The tournament will be held in sites around North America, Central America, and Asia. This was driven by a 4.2% increase in energy costs. Many major leaguers have expressed interest in playing in such a competition, including Miguel Tejada of the Baltimore Orioles (Dominican Republic), Dontrelle Willis of the Florida Marlins (United States), Carlos Lee of the Milwaukee Brewers (Panama), and Andruw Jones of the Atlanta Braves (from the Dutch island of Curaçao). In the United States, the Consumer Price Index rose by 0.6% compared to 0.2% for September. In light of the International Olympic Committee recently voting baseball out of the Summer Games as a medal sport, this competition hopes to prove to the IOC that baseball is truly an international game. Inflation has increased. It will be the first international baseball competition to feature Major League players.

Despite the rapid increase in the price of oil, neither the stock markets nor the growth of the global economy have been noticeably affected. Recently, Major League Baseball officially revealed its plans for the World Baseball Classic, to be held in March 2006. But oil's historically high ratio of Energy Returned on Energy Invested continues a significant decline. According to the IBAF chairman, such a move would do more for popularizing baseball around the world than any amount of money spent by the MLB for its current worldwide marketing. In the United States, for instance, each $1000 dollars in GDP required 2.4 barrels of oil in 1973 when adjusted for inflation this number had fallen to 1.15 by 2001. The International Baseball Federation (IBAF) has lobbied MLB to suspend play during the Summer Olympics, so that MLB players could compete for their respective national teams, and has agreed to shorten the Olympic tournament if MLB agrees to freeing its players. While total consumption has increased [22], the western economies are less reliant on oil than they were twenty-five years ago, due to substantial growths in productivity. At the 2004 Summer Olympics the United States was not represented at all, since its team of minor league players did not survive the qualifying rounds.

This could well be the case if a major storm were to hit the gulf, where the reserve is located. The United States sends a team of minor league players to the Summer Olympics, as it takes place during the regular Major League season. demand for about a month in the event of an emergency, unless it is also destroyed in the emergency. Baseball tournaments between international teams do occur, notably at the world championships and at the Olympic Games. The American Strategic Petroleum Reserve could on its own supply current U.S. In deference to any controversy, more and more the term "World Series Championship" is being used, the subtlety being that it is merely a title and not a political statement. Nevertheless, that loss of revenue would put a strain on government balance sheets. Pappas' web page on the subject.).

Most economists see this as unlikely, partly because all developed countries have high fuel taxes that decrease as oil prices increase and can be eliminated in the event of a dramatic price spike. (For details, see Mr. Some see these increases in the price of oil leading to a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash. Furthermore, investigation of the New York World for the relevant years revealed no evidence of the supposed sponsorship. There is controversy regarding the potential effects of oil-price shocks. Baseball researcher Doug Pappas refutes that claim, demonstrating a linear progression from the phrase "World's Championship Series" (used to describe the 1903 series as well as some of the 19th-century postseason series) to "World's Series" (a term first used in the 1880s and which persisted for decades) to "World Series". the implications for the oil market are global."[21]. A persistent myth is that the "World" in "World Series" came about because the New York World newspaper sponsored it.

[19] [20] The press release from the IEA states, ".. Attempts to pit the North American champions against champions in the Japanese or Latin American leagues in a truly meaningful way have, so far, not succeeded. These supplies would begin entering the US markets within two weeks of 2 September. Sometimes the Japanese have gained the upper hand in those series; but since they are only exhibitions, their results cannot be regarded as conclusive. In order to stabilize world energy supplies, the International Energy Agency offered to sell two million barrels of crude oil and other refined products from national supplies. The World Series winners have occasionally played winter exhibition series against the best players of other leagues around the world, such as Japan. Bush stated, "This storm has disrupted the ability to make gasoline and deliver gasoline," and "This is going to be a difficult road."[18] Many people have observed however that stores of crude oil do little to address inadequate refinery and distribution capacity. Moreover, virtually all of the best international players — from the Pacific Rim, Latin America, the Caribbean, and elsewhere — play on Major League rosters, with the notable exception of Cuban nationals.

EDT, on 31 August, President Bush announced the Energy Department was approving loans from the Strategic Petroleum Reserve and that EPA announced nationwide waver on fuel blends. While some would contend that there is no reason to believe that the World Series winner is a significantly better team than any club team outside Major League Baseball, no challenges have been made by other leagues. On 5:10 p.m. At the time the term was first used, baseball at the major league level was only played in the United States. Airports began to report shortages in aviation fuel on 2 September.[15] A shortage could lead to a decrease in food production.[16] Higher prices for heating oil and natural gas were expected as the winter heating season set in.[17]. The "World" appellation has stuck despite the fact that only teams in the two major leagues, which happen to cover only the United States and Canada, actually participate. [14] Many of these were blamed on panic buying. That rule has been in place from the beginning, to keep the games "honest".

Shortages were feared or experienced in several states including Tennessee [12], Alabama [13], and South Carolina. The shares for the actual participants are limited to the gate receipts of the minimum number of games necessary to play the series. In Stockbridge, Georgia, regular gas prices came to $5.87 at a BP station. Prior to 1969, teams finishing in the first division, or top half of the leagues' standings, received such shares; today, only the teams finishing in second place in their division but not earning a wild card receive them, because there are more divisions with each having fewer teams. Gas prices soared after the closing down of the major pipelines connecting the gas of the Louisiana region to the entire East Coast. A portion of the gate receipts from the World Series — and, from 1969 onward, the other rounds of postseason play preceding it — is used to fund a Players' Pool, from which descending shares are distributed to the World Series winner, the World Series loser, all the other teams qualifying for the playoffs which did not reach the World Series, and certain other teams which did not qualify for the playoffs, the criteria for the latter changing at various times. [11]. The designated hitter was not used at all prior to the 1975 Series, although the DH rule had been adopted by the AL in 1973.

Louisiana Offshore Oil Port has not. From 1975 through 1985, the designated hitter was used for all games in even-numbered years, and was not used in any games in odd-numbered years. Port Fourchon has also suffered long term damage. In a National League ballpark, both team's pitchers must hit. The port of Louisiana is one of its most important inlet for oil imports, and the gulf itself is a major oil producer. In an American League ballpark, both teams use a designated hitter to hit for the pitcher. The Gulf Coast is home to a major portion of America's refining capacity. Since 1986, the designated hitter rule has been applied based on the rules normally in effect at the home ballpark.

Hurricane Katrina had a major impact on oil and gas prices, especially within the United States. Starting with the 2003 World Series, the league that wins the mid-season All-Star Game has been awarded home-field advantage. Continued concerns about Iran raised the price to $68.38 on January 31.[10]. Until 2003, the team given the home-field advantage was switched every year between the American League and the National League. Observers believe that violence in Nigeria, and Iran's friction with the West are responsible for this price increase. That has been the pattern since 1924, with the exception of World War II, when travel restrictions were in place. This was the highest increase since early October 2005. The first two games of the series are played in the home ballpark of the team awarded home-field advantage; the next three are in the other team's ballpark, and the final two, if necessary, are back in the first team's ballpark.

On January 17, sweet crude oil for February delivery rose by $2.38 (3.7%) to $66.30 a barrel. . As a result, shortage of a particular grade of oil can keep street prices high, even when overall supply exceeds demand. The Chicago Cubs have gone the longest between titles, having last won the World Series in 1908. In addition, there are different grades of oil and each refinery is typically configured to process a narrow range of grades. Of those eight teams, only three have appeared in the Series: Milwaukee, San Diego, and Houston. While the street price of gasoline usually corresponds to the price of crude oil, refinery capacity can become the governing factor, particularly during periods of high demand. Eight teams, all established since 1961, have never won a World Series title: the Texas Rangers, Houston Astros, San Diego Padres, Washington Nationals, Milwaukee Brewers, Seattle Mariners, Colorado Rockies, and Tampa Bay Devil Rays.

Over the course of three weeks leading up to August 10, crude oil prices had risen by 13%. The New York Yankees have the most World Series titles, with 26 championships through the 2005 season. During mid-August, with a string of refinery snags (fires/other deterrents to oil refining), shrinking gasoline inventories, and a growing thirst for oil by American consumers, New York Mercantile Exchange traded crude oil futures surged past the $66 mark and briefly touched $67/barrel. The modern World Series has been an annual event since 1903, with the exceptions of 1904 and 1994. influence. Baseball has employed various championship formulas since the 1850s. Saudi Arabian King Fahd's death on August 1, 2005, meant a new regime that may be less amicable to U.S. The Series winner is determined through a best-of-seven playoff (except in 1903, 1919, 1920 and 1921 when the winner was determined through a best-of-nine playoff) and is awarded the World Series Trophy, as well as World Series rings.

In June 2005 crude oil prices surged to record highs eventually breaking the psychological barrier of $60. It is played between the pennant winner of the American League and the pennant winner of the National League. It then reversed course and headed to an all time high of $58.28, driven mainly by lingering concerns of a prolonged weak dollar. The World Series is the championship series of Major League Baseball in the United States and Canada, the culmination of the sport's postseason each October. In April 2005 the price began to fall, reaching $53.32 on April 9. Glory Fades Away: The Nineteenth Century World Series Rediscovered, Jerry Lansch, 1991. On March 16, 2005, the price surpassed the October 2004 high of $55.17 to close at $56.46. Baseball Almanac: World Series.

The price of light, sweet crude oil on NYMEX has been above $50/barrel since March 5, 2005. Sporting News: History of the World Series. After retreating for several months during the winter of 2004/2005, prices rose to new highs in March 2005. World Series.com - official website. These analysts believe the problem would be solved by increasing the efficiency of factories, homes and transportation and easing the demand crunch by using less energy and more renewable energy. Darold Knowles is the only pitcher to appear in every game of a seven-game World Series (1973). Still others suggest that the main issue is a lack of energy efficiency in industry. Bobby Richardson is the only player from a losing team to win a Series MVP award (1960).

A July 14, 2005 Morgan Stanley report[9] suggests that opinions of the oil market could burst just like a bubble if indications of declining Asian demand continue. Reggie Jackson is the only other player to accomplish the feat (1977). If these speculators are wrong, current prices may actually be a price bubble, and the price could thus collapse. Babe Ruth twice hit three home runs in one Series game (1926 and 1928). These people argue that speculators foresee increasing demand, decreasing supply, or both, leading to a long term increase in the price of oil. The 1976 World Series was the first Series to use the designated hitter rule. Others believe that the price of oil is almost entirely speculative, and that the increase in price is due to oil speculation extending into the long term. The 1971 World Series featured the first Series game scheduled under lights.

Not only is there a limited amount of fossil fuels which have been burnt as fuel, but however much remains will be used faster by a growing industrialized world population and what remains will be more dificult to get since the easiest wells have been tapped and the remaining sources will be fought over in resource wars. The 1970 World Series featured the first Series game on artificial turf. A more fundamental problem that some believe is causing the price to rise is the probability of peak oil already or soon to be reached. The 1949 World Series featured the first Series game finished under lights. Critics argue that these problems periodically push price higher, but that they are not fundamental or long term enough to cause the large jump in gas price. The 1908 World Series holds the record for poorest attendance including the record-low 6,210 in the finale. Some people and news agencies argue that labor strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other general problems are responsible for the higher gas prices. Amazingly, that has not happened since.

Since oil is traded in dollars, the price must increase for OPEC to maintain buying power in Europe. The 1906 World Series featured two franchises that had never appeared in the World Series. One other important cause is the United States dollar's slump against the Euro. At 82-79 (.503), the 1973 New York Mets had the lowest winning percentage of any World Series team. The short term price of oil is partially controlled by the OPEC cartel and the oligopoly of major oil companies. From 1978 to 1987, no franchise won the World Series twice, the longest such streak. Even if oil supplies themselves are not reduced, some experts feel the easily accessible sources of light sweet crude are almost exhausted and in the future the world will depend on more expensive sources of oil. From 1949 to 1966, every Series involved the Yankees, Dodgers and/or Giants.

Despite this there is increasing discussion of peak oil and the possibility that the future may see a reduced supply of oil. From 1949 to 1956, every Series game was won by a team from New York City. This rate of increase is faster than that of any other date in the past. The 1921-1922 Giants and 1975-1976 Reds are the only National League teams to win two straight World Series. World supply (specification) came in at 83 million barrels a day during 2004 in department of energy EIA calculations ([8]). The Oakland Athletics' three consecutive World Series victories from 1972 to 1974 are the most for any non-Yankees franchise. Gas prices in the region, normally 70 cents below the national average, were at $3.12 on August 30.[7]. The New York Giants' four consecutive World Series appearances from 1921 to 1924 are the most for any non-Yankees franchise.

Short-term shutdowns because of power outages knocked out two major on-shore pipelines, and at least 10% of the nation's refining capacity was not operating in the wake of the storm. The New York Yankees have won two or more championships in seven different decades - 1920s, 1930s, 1940s, 1950s, 1960s, 1970s and 1990s. market. 2005 - Chicago White Sox broke their curse winning for the first time since 1917. In late August, 2005, Hurricane Katrina crippled the supply-flow from off-shore rigs in the Gulf Coast, the largest source of oil for the domestic U.S. 2004 - Boston Red Sox broke their curse winning for the first time since 1918. Outside the Middle East other oil producers have worried investors such as the strikes political problems in Venezuela and potential instability in West Africa. 1994 - World Series cancelled due to strike.

The war in Iraq, Iran's nuclear program, and questions about Saudi Arabia's internal stability all could in the future lead to a dramatic fall in the supply of oil. 1993 - Toronto Blue Jays won on a Game 6 walk-off home run by Joe Carter. One of the most important is growing turbulence in the Middle East, the world's largest oil producing region. 1989 - Series interrupted by the Loma Prieta earthquake.
There are a number of reasons why oil traders feel that oil supplies might be reduced. 1988 - Los Angeles Dodgers propelled to victory by Kirk Gibson's shocking Game 1 walk-off home run. Note: the total percentage exceeds 100 because the overall demand from all other countries decreased during the same period.. 1986 - New York Mets' elimination averted in Game 6 with the assistance of Bill Buckner's infamous error.

Department of Energy Energy Information Administration estimates: [6]. 1985 - Kansas City Royals' elimination averted in Game 6 with the assistance of an umpire's blown call. Sources of the world-consumption-increase in 2004 compared to 2003 (total increase of 3.4%), according to U.S. 1980 - Philadelphia Phillies won their first championship after nearly a century in existence. New demand is also coming from emerging industry in third world nations, including India and especially China which is developing a western-style car culture and whose manufacturing bases have grown very rapidly in recent years. 1977 - New York Yankees won on Reggie Jackson's Game 6 heroics. economy currently accounts for one-quarter of all demand. 1976 - Cincinnati Reds swept entire postseason.

The U.S. 1975 - Boston Red Sox' Carlton Fisk's riveting Game 6 walk-off home run was not enough to break their curse. market, the source of an increasing percentage of the world's demand for petroleum. 1962 - New York Yankees won a Series decided by Willie McCovey's line drive. High demand is led by the U.S. 1960 - Pittsburgh Pirates won on Bill Mazeroski's Game 7 walk-off home run (the only Game 7 walk-off home run). . 1956 - New York Yankees' championship included Don Larsen pitching the only postseason perfect game.

The previous high was $2.38 per gallon in March 1981, which would be $3.03 per gallon after adjusted for inflation.[4][5]. 1954 - New York Giants won championship after Willie Mays made The Catch. The average retail price was nearly $3.04 per gallon. Louis Cardinals won on Enos Slaughter's mad dash in Game 7. In the United States gasoline prices reached an all time high during the first week of September 2005 in the aftermath of Hurricane Katrina. 1946 - St. A record price of $70.85 per barrel was reached on August 29, 2005.[2] While oil prices are considerably higher than a year ago, they are still roughly 25$ from exceeding the inflation-adjusted "peak of the 1980 shock, when prices were over $90 a barrel in today’s prices" [3]. 1932 - New York Yankees dominated behind Babe Ruth's Called Shot.

By August 11, 2005, the price had been above $60/barrel for over a week and a half. 1923 - New York Yankees won their first championship. The price of standard crude oil on NYMEX was under $25/barrel in September 2003. 1920 - Cleveland Indians' victory was punctuated by Bill Wambsganss who turned the only postseason unassisted triple play. At the same time, Cuba has experienced electricity shortages. 1919 - Cincinnati Reds' championship was tainted by the Black Sox scandal. These nations must resort to limiting imports or rationing their existing supplies. 1908 - Chicago Cubs won their last championship to date.

Many countries in Sub-Saharan Africa lack the foreign exchange reserves (ie, Dollars) to purchase enough oil products at the ever increasingly higher prices. 1905 - New York Giants' Christy Mathewson became the first World Series hero after pitching three complete game shutouts. The Indonesian president had instituted subsidies to control the price of gasoline.[30]. 1902 Pittsburgh Pirates NL, Philadelphia Athletics AL - no Series. A senior minister of Singapore expressed concern at the oil crisis in Indonesia.[29]. 1901 Pittsburgh Pirates NL, Chicago White Sox AL - no Series. [27] New sources of energy were sought to deal with the crisis.[28]. 1900 Brooklyn Superbas win 4, Pittsburgh Pirates win 1 - Chronicle-Telegraph Cup Series.

In the Philippines, the oil crisis caused its public to call for immediate government assistance. 1899 Brooklyn Superbas - no Series. combined other non-OECD: 21%. 1898 Boston Beaneaters - no Series. UK: 3.5%. 1897 Baltimore Orioles win 4, Boston Beaneaters win 1 - Temple Cup Series. Canada: 4%. 1896 Baltimore Orioles win 4, Cleveland Spiders win 0 - Temple Cup Series.

Asia outside Japan and China: 13.8%. 1895 Cleveland Spiders win 4, Baltimore Orioles win 1 - Temple Cup Series. US: 19.4%. 1894 New York Giants win 4, Baltimore Orioles win 0 - Temple Cup Series. China: 38.9%. 1893 Boston Beaneaters - no Series. 1892 Boston Beaneaters win 5, Cleveland Spiders win 0 - split-season championship.

1891 Boston Beaneaters NL, Boston Reds AA - NL instructs Beaneaters not to play Series as leagues discuss restructuring. 1890 Brooklyn Bridegrooms NL, Louisville Colonels AA - each win 3, no resolution. 1889 New York Giants NL win 6, Brooklyn Bridegrooms AA win 3. Louis Browns AA win 2.

1888 New York Giants NL win 6, St. Louis Browns AA win 5. 1887 Detroit Wolverines NL win 10, St. Louis Browns AA win 4, Chicago White Stockings NL win 2.

1886 St. Louis Browns AA - 6 game Series, ends in dispute. 1885 Chicago White Stockings NL, St. 1884 Providence Grays NL, Metropolitan [New York] AA - 3 game series, Providence wins all 3, 60-game winner Old Hoss Radbourn pitches every inning.

1883 Boston Beaneaters NL, Philadelphia AA - Philadelphia cancels scheduled Series after losing "City Series" to Phillies. 1882 Chicago White Stockings NL, Cincinnati Reds AA - 2 game Series, each club wins 1. 1881 Chicago White Stockings. 1880 Chicago White Stockings.

1879 Providence Grays. 1878 Boston Red Caps. 1877 Boston Red Caps. 1876 Chicago White Stockings.

1875 Boston Red Stockings. 1874 Boston Red Stockings. 1873 Boston Red Stockings. 1872 Boston Red Stockings.

1871 Philadelphia Athletics. 1870 Chicago White Stockings. 1869 Brooklyn Atlantics. 1868 New York Mutuals.

1867 Morrisania Unions. 1866 Brooklyn Atlantics. 1865 Brooklyn Atlantics. 1864 Brooklyn Atlantics.

1863 Brooklyn Eckfords. 1862 Brooklyn Eckfords. 1861 Brooklyn Atlantics. 1860 Brooklyn Atlantics.

1859 Brooklyn Atlantics. 1858 New York Mutuals. 1857 Brooklyn Atlantics.

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