Wednesday April 16, 2008

Crude oil hits $114.08 record as investors turn to commodities

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

bloomberg.com :

Crude oil climbed to $114.08 a barrel yesterday [15 Apr 2008], the highest since futures began trading in 1983, as investors purchased commodities because their returns have outpaced stocks, bonds and other financial instruments. Oil in New York surged 79% over the past year. Rising global demand for raw materials and a weakening U.S. dollar have led to record prices this year for commodities including corn, rice and gold. China's imports of diesel fuel jumped 49% in March while crude inflows climbed 25% during the month.

- 3 Yergins. The moment crude oil prices hit $114, peakoilers from all over the world jumped in joy, popped champagne, and let off fireworks as we celebrated reaching 3 times the price of oil [$38] to which Daniel Yergin famously said it would fall. Okay, maybe I exaggerate. A little. Here's the quote : In a column in Forbes Magazine, published on 11/1/04, Daniel Yergin, in response to a question about the future direction of oil prices, dismissed concerns about oil supplies and asserted that oil prices on 11/1/05 would [be] at $38 per barrel ...

I mean, how wrong can one get? But anyway. In the grand scheme of things, Triple Yergin Day is just a blip on the journey to $120, $150, and then $200 oil and beyond. These are the resistance levels. It looks like $110 could actually become a potential support level, and the next consolidation range looks to be between $110 to $120. Support levels as I see them are around $110, $105, $100, $89 and $85.

See also :

1. Crude oil rises to record $112.48 on falling dollar
2. Crude oil hits record $112.21 per barrel
3. Oil hits $111.00 high, breaking records 7 trading days in a row
4. OPEC keeps output steady in face of $100 oil

(2008-04-16 13:02:48 SGT) [Energy] Permalink

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