reality-based educator

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.