Posted on 04/16/2008 4:38:39 AM PDT by TigerLikesRooster
Oil hits new high above $114, dollar supports
1 hour, 37 minutes ago
Oil struck a new record high above $114 a barrel on Wednesday, buoyed by the weak U.S. dollar, inflows of speculative money and long-term constraints on supply.
U.S. crude was 53 cents higher at $114.32 a barrel by 5:43 a.m. EDT, just below a fresh peak of $114.41. Today's price is more than three times the average price of 2002, when oil's rally began.
London Brent crude for the new front-month of June was up 54 cents at $112.12.
"The funds and technicians are in the driving seat," said Christopher Bellew, of Bache Commodities Ltd.
"There has been growth in the level of speculative money going into commodities markets."
The weak dollar -- together with strong demand -- has driven oil and other commodities such as corn, gold and rice to record highs in recent months, as investors and speculators have sought a hedge against inflation.
"The dominant factor continues to be the U.S. dollar and I expect this to continue for a while," said Gerard Rigby, an analyst at Sydney-based Fuel First Consulting.
"Whenever you get any kind of good economic news out of the (United States) at the moment, the dollar will rise and oil falls, and the other way round, you get a new oil record," he added.
The dollar headed towards a record low versus the euro on Wednesday, hurt by caution ahead of quarterly earnings announcements by major U.S. banks and worries about the turmoil in credit markets.
CHINA DEMAND
Lifting some concerns over a supply squeeze, Mexico, a major supplier to the U.S., reopened its three main Gulf of Mexico oil ports as bad weather cleared, the government said. Only a smaller Pacific port remained shut.
But in a sign that consuming countries were still concerned about a supply shortfall, Britain's prime minister Gordon Brown on Tuesday called on the Organization of the Petroleum Exporting Countries to boost production to counter rapidly rising prices.
OPEC, which pumps more than a third of the world's oil, insists it is supplying enough oil.
Demand in the world's top consumer may be losing steam. U.S. crude oil imports fell in February to the lowest level in a year.
They declined by 486,000 barrels per day (bpd), or 4.9 percent, from the month before to 9.514 million bpd, the federal Energy Information Administration said.
But China's diesel imports rebounded in March to 490,000 tonnes, up some 49 percent from a month earlier, and remained robust in April and May, as the government extended a tax break on imported fuels.
China's economy grew 10.6 percent in first quarter, the National Bureau of Statistics said, slower than the 11.2 percent in the fourth quarter, but stronger than forecast of 10.0 percent, underscoring the resilience of the world's fourth largest economy despite fierce winter weather and a global credit crunch.
U.S. crude oil inventories likely rebounded last week, with an increase in imports lifting supply, following a surprise drawdown the week before, a Reuters poll of 14 analysts showed. But gasoline stocks probably fell for the fifth week running.
(Additional reporting by Annika Breidthardt in Singapore; editing by James Jukwey)
BTTT
http://www.agiweb.org/workforce/Currents-007-OilByCurrency.pdf
I’ve never had a job that paid in gold, not many other people around the world do either.
What is the price of oil against California Real Estate? If you want to cherry pick comparisons, we can go back and forth. But to claim oil has not risen in price is rather foolish. It has risen far more than the average expense for the past 8 years or so.
Other people do lots of crimes, I never found that to justify committing my own. You cost the business owner time of his/her employees.
There are better ways to fight the war in my opinion.
I have, back when dollars were redemable in gold (pre 1963ish).
In order to compare prices you need something of constant value. The most accepted something is gold, gold however is not perfect since it too is subject to supply/demand inflation/deflation however it is the best benchmark of real wealth we've got so I think I will use it until a better benchmark comes arround.
No, the only meaningful comparison of price is what I have or what I can earn. The rest is only theoritical discusion. For me the most compariable price is what it take in time for me to earn. That is my real price; what I have to give up to have it.
Make that $115
while Congress & Bush sit on their hands...
Notice the Russians or Chnese never complain about Soros?
If he did to them what he is trying to do to the US, he’d get a radio active “aparatif” in a hurry!
That’s the ticket!!! LOL!! May God bless you and yours!!
bttt
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.