Skip to comments.Crude oil price hits new high of $102.59 a barrel
Posted on 02/28/2008 6:13:53 PM PST by bjs1779
The price of oil shot to a new high last night as Wall Street traders bought fuel contracts to offset the falling value of the dollar.
Energy traders were also unnerved by a fire at Shells Bacton gas terminal in Norfolk, which threatened more than 45 million cubic metres of gas supplies, about 13 per cent of National Grids forecast demand. The blaze which started at 6pm was extinguished. National Grid sought to reassure markets that the facility, the third-largest in the UK, was still receiving adequate supplies.
Light sweet crude oil for April delivery rose $2.95 to $102.59 a barrel in New York. Even after the market had closed, in after-hours trading, sweet crude continued to rise to $102.97. However, taking inflation into account, the price of oil is still lower than the record set in 1980, which by some calculations hit $104 a barrel.
Yesterday the price surged after US growth data showed that the worlds largest economy had expanded by just 0.6 per cent in the fourth quarter. While a slowing economy usually hits demand for oil, traders appeared to be buying sweet crude contracts as a hedge or as a means of offsetting the weakness of the dollar.
(Excerpt) Read more at business.timesonline.co.uk ...
g almost like its matching interest rate drops
Can we doing something about our bottoming dollar now?
look on the bright side this is quite a boon for our exporters. Isn’t that what our paleocon friends wanted. The weak dollar is encouraging american industry to expand. Regretfully they didn’t consider that you can’t have it both ways. You can’t have a strong dollar and strong exports.
Now I’m sure they’re complaining about the falling dollar.
That’s no big deal. After we find out how many nukes Iran will have and distribute to Syria, Sudan and other countries soon, then oil will go high. ...consequence of our lack of will to fight and penchant for employing enemies instead of Americans.
No, it looks like they swallowed the bait of weak dollar and they have disappeared.
Right :) Them evil traders are everywhere!
Meat, if the farmers can afford to feed them.
Feel free to add to list.
I am hard pressed to understand why a fire involving natural gas would affect the price of oil.
Of course, to the layman, gas and gasoline are the same thing. But traders should know better.
We must of had a lot of natural gas fires for the past year. Maybe you have the imagination to blame it on something else.
From what I can tell the market is so jittery and supplies are so tight that anything going wrong in the system makes people go crazy. It isn’t sustainable and I wonder what the correction is going to look like
I wonder if anyone wants to do a little homework and report what a barrel of oil costs in Euro dollars?
my old Saturn (35+ mpg) is looking better everyday
Give her a kiss every morning!
I'm not sure what you're implying here, but if you're just complaining in general about the rising price of oil, just say so.
If you don't understand the fundamental reasons for it, we can help you. The facts have been out there for quite some time.
I'm not sure how you missed them, but this forum is here to help.
It sounds like you have no idea what you are talking about, counselor.
Let’s spend even more, borrow even more, and keep cutting interest rates! It’s working great!
If I don't have any insights into the oil industry after working for them for nearly three decades, I'm not sure how you have better ones.
I've forgotten your credentials, so perhaps you could briefly summarize them.