Oil prices surged past $125 per barrel Friday on the eve of the U.S. driving season as a weakening U.S. dollar drove investors to snap up commodities.
Light, sweet crude for June delivery rose as high as $125.12 a barrel in electronic trading on the New York Mercantile Exchange at midday before falling back to $124.86 by early afternoon in Europe.
On Thursday, the contract rose to a record close of $123.69 a barrel.
Emphasis added me me.
One-third of this year is over. It's gone from hitting the astounding $100/barrel at the start of 2008 to $125.
Stockbrokers will argue that "past results are no guarantee of future performance," but I'd say we're on our way to $200/barrel oil by 2009.
The day has just begun.
I wouldn't be surprised if by the end of this day, East Coast Time, it hits $126/barrel.
The U.S. dollar has nowhere else to go but down. This leaves oil with no ceiling.
Expect more stories about the price of food jumping too.
For anyone coming to this blog late, this is the outlook I published back on January 1st: And Now A Word About Our Future…
No change.
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