Friday, June 27, 2008

Chronicles Of Depression 2.0: #137

Oil reaches $142 on view dollar will keep falling
Oil futures climbed briefly to a new record above $142 a barrel Friday on expectations that the weakening dollar, a major factor in crude's stratospheric rise, will extend its decline and add to oil's appeal.

Retail gas prices inched lower overnight, but are likely to resume their own trek into record territory now that oil futures have broken out of the trading range where they had been for nearly 3 weeks.

Light, sweet crude for August delivery rose as high as $142.26 a barrel in premarket electronic trading on the New York Mercantile Exchange before pulling back to trade up $1.19 at $140.83. On Thursday, the contract shot past $140 and rose more than $5 to a new settlement record.

Oil rose Thursday in part on comments by OPEC officials; the organization's president predicted prices will rise further, and a top Libyan oil official suggested his nation may cut production.

Emphasis added by me.

Well who were the eejits who thought the U.S. Dollar would rise? Those are people who can now lose their jobs. Cause: gross incompetency.
"When money has nowhere to go, it is parked in commodities as it is one of the few investment instruments that actually rises the more money you pour into it," said Oliver Jakob, an analyst at Petromatrix Gmbh, in Switzerland in a note.

Which means higher food prices, higher raw material prices, which means inflation, you greedy bastards. You will kill us all.

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