Friday March 14, 2008

Oil hits $111.00 high, breaking records 7 trading days in a row

This article belongs to the NYMEX crude oil price records story arc.

news.bbc.co.uk :

Oil prices rose to fresh highs for the seventh trading day in a row as the rush to assets considered safer than the falling dollar continued. US crude gained more than $1 to touch $111 a barrel, before falling back slightly to close at $110.33. Meanwhile, EIA analysts have predicted that oil demand will slow as the US economy, the world's largest oil guzzler, runs out of steam. And Opec, the group of nations responsible for 40% of the world's oil exports, has echoed this view, refusing to increase output.

Investors are putting cash into oil and commodities like gold as a refuge from the dollar and volatile world stocks. Oil prices rose despite US data showing a surprise rise in crude inventories. "Oil and other commodities have an intrinsic value to the extent that the US dollar depreciates, (oil) becomes relatively cheaper in terms of other currencies, such as the euro," said David Moore, a commodity strategist with the Commonwealth Bank of Australia. "So you get an adjustment to compensate for that effect."

- It looks like oil didn't want to stop at $110 and just had to go one dollar higher. It has since dropped back and is consolidating just below $110. Could it be building a base to spring to test resistance at $120 or is it going to drop back to support at $100? Even as a raging oil bull, I am starting to wince a bit here. I mean, come on, breaking all-time record highs 7 trading days in a row? And around the same time, gold hitting $1000 an ounce for the first time ever? This is phenomenal.

See also :

1. Crude oil hits $110.20 record on dollar fall
2. Crude oil reaches $109.72, breaks records for 5 days running on weak dollar
3. OPEC keeps output steady in face of $100 oil
4. Gold hits $1000 an ounce for the first time in history

(2008-03-14 12:40:49 SGT) [Energy] Permalink

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