Monday, October 29, 2007

$93 Oil

Oil hit $93 in overnight trading.

The Wall Street Journal
says oil is now closing in on the inflation-adjusted highs hit in early 1980 (depending on the adjustment, a then-$38 barrel of oil would be worth US$96 to $101 or more today.)

The Journal also says oil could face resistance in clearing the $100 a barrel milestone:

Expectations for tight year-end supply and other factors that have driven crude to record heights aren't likely to diminish soon. But psychological resistance to triple-figure oil and a nagging feeling that prices have run too high, too soon could keep crude from reaching $100 a barrel before year's end, as traders decide to lock in gains instead, analysts say.

One analyst tells the Journal that only three factors can keep oil from going higher: warmer winter weather, profit taking or a recession.

Otherwise, $100 oil.

Of course prices are fluctuating pretty fast - but the trend has been ultimately upward.

Just in the last week, oil went from $87 a barrel to $93 a barrel. A month ago, it was at $78 a barrel. Oil is up 47% this year (it started the year at $50 a barrel.)

Sure it falls backward sometimes as oil inventories rise or the weather gets warmer or global tensions decrease a bit.

But ultimately, the trend has been upward all year.

With the Fed cutting rates again this week and printing money as fast as it can to stave off recession, I can't see oil falling below $80 any time soon.

Gee, remember when oil was $18 a barrel?

That was back in 2001, just before Bush and Cheney - two oil men - took power in the Butterfly Ballot Putsch.

Funny how high oil prices have gone since the two oil guys took power.

Nothing funny about it. Mission Accomplished.
Wow, look at that volume.
Now it's at $95 and change. We're about 6 bucks and a few cents away for the all-time, adjusted for inflation, high.
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