Saturday July 12, 2008

NYMEX crude oil jumps $10 in 2 days, hits $147.27 record on Iran, Brazil, Nigeria, dollar

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

bloomberg.com :

NYMEX crude oil prices jumped $10 in 2 days, hitting a record $147.27 per barrel on concerns in the Middle East and supply disruptions from Brazil to Nigeria, as Israeli war planes practiced over Iraq, and Iran tested missiles capable of reaching Israel, and may blockade the Strait of Hormuz, the shipping lane for a fifth of the world's crude, if attacked. Meanwhile, oil workers are planning a strike in the offshore Campos Basin (80% of Brazil's oil production), and the Nigerian militant group MEND said attacks will resume on oil facilities. The price gain has also triggered computer trading programs, and oil rose as the weakening dollar declined to $1.5947, near the all-time low of $1.6019 against the euro on concerns over Fannie Mae and Freddie Mac.

- The media is busy pointing fingers every which way as crude oil prices bounced off an intra-day low of $135.14 earlier this week to jump up $12.13 to hit the new $147.27 record. In the space of a single article, they manage to bring up Iran, Brazil, Nigeria, the dollar, the euro, Fannie Mae, Freddie Mac, and computer-triggered program trading. Not bad. It shows you the complex interaction of factors that go into the oil price every single second during trading sessions. It is very fascinating to watch, even as an observer, as tens of thousands of visitors to the popular crude oil live quotes page can attest to.

Of course, even with the new record, we are $2.73 short of the much-awaited $150 resistance level, and there could still be a correction back to the $140 support level, or even prior support at $130 as the increasingly volatile crude oil market makes subsequent price movements virtually anyone's guess, with price swings of $5 or $10 every day or so. I am holding on to my oil ETF's and my energy trusts, and awaiting subsequent resistance levels of $150, $180, and $200 to be broken. Oil is in a bull market, and the bull is galloping away.

See also :

1. Crude oil prices hit $144.32 record on NYMEX while stocks enter bear market
2. NYMEX crude oil prices hit $145.85 record as stocks tumble and OPEC blows smoke
3. NYMEX crude oil jumps back up $6 to $142 on program trading, Iran and Nigeria

(2008-07-12 08:34:48 SGT) [Energy] Permalink

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