Thursday April 17, 2008

Oil rises to record $115.21 on unexpected inventory drop

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

bloomberg.com :

Crude oil and gasoline rose to records after the Energy Department reported unexpected declines in U.S. crude inventories and refinery operating rates. Oil climbed to $115.21 a barrel in New York, the highest since futures began trading in 1983. Yesterday [16 Apr 2008], oil futures gained $1.14, or 1 percent, to settle at $114.93 a barrel, a record close. Prices are up 82% from a year ago.

- Some of the news headlines are now screaming "Oil above $115 for the first time". It's like some magic level was reached and $115 seemed somehow more significant than say $114, or $112, or $110, which were all record-breaking levels themselves. Of course, there's no real basis for that other than a psychological need for some milestone to look back on.

And it looks like we are moving in $5 steps nowadays. $100-105, $105-110, and now $110-115. That's in terms of trading ranges. Could $115-120 be next? Perhaps. At some point, maybe after $200 oil, we might be taking $10 steps. All in all, a great environment for the oil longs, but do spare a thought for companies such as the airlines, and also as peakoilers, we constantly worry about the general impact on the overall economy - commerce, transportation, food, and so on.

See also :

1. Crude oil hits $114.08 record as investors turn to commodities
2. Crude oil rises to record $112.48 on falling dollar
3. Crude oil hits record $112.21 per barrel
4. Oil hits $111.00 high, breaking records 7 trading days in a row

(2008-04-17 14:11:34 SGT) [Energy] Permalink

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