Crude oil hits $119.90 record on Euro breakout above 1.60

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Wednesday April 23, 2008

Crude oil hits $119.90 record on Euro breakout above 1.60

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

bloomberg.com :

Crude oil rose to a record $119.90 a barrel in New York [22 Apr 2008] as the dollar dropped to an all-time low against the euro, prompting investors to purchase commodities as an inflation hedge. Oil gained as the dollar touched $1.60 per euro for the first time after European Central Bank policy makers signaled they may raise interest rates because of inflation. The euro touched $1.6019, the highest since the European single currency was introduced in 1999. The falling dollar and higher global demand for raw materials have led to records this year for commodities including gold, corn, soybeans and rice.

- Traders and observers alike have been watching the Euro all day, waiting for the inevitable EUR/USD breakout above 1.60. The ECB helped things along with its hawkish stand on inflation. In the recent sessions we have been having a pronounced correlation between crude oil prices and the Euro - the higher the Euro goes, the higher crude oil prices follow.

Earlier I was musing on $120 oil when the Euro hit 1.60, but it looks like we'll have to settle for $119.90 for now, which is close enough. NYMEX crude oil is breaking records 7 trading days in a row once again and it has hit this most recent record going into the May futures expiry, which is bullish. Resistance levels for NYMEX crude oil are around $120, $150, $180 and $200, and support levels remain at $110, $100, $90 and $85.

(2008-04-23 08:19:11 SGT) [Energy] Permalink Comments [1]

Comments:

I came across this surprising article about a poll by WorldPublicOpinion.org:
http://www.reuters.com/article/newsOne/idUSN1835277320080420

Some quotes:

• "Most people believe oil is running out and governments need to find another fuel… 70 percent of respondents in 15 countries and the Palestinian territories said they thought oil supplies had peaked."

• "In the United States… 76 percent of respondents said oil is running out, but most believed the U.S. government mistakenly assumes there would be enough to keep oil a main source of fuel."

• "The current tightening of the oil market is not temporary but will continue and the price of oil will rise substantially, most respondents said."

Posted by Doug on April 24, 2008 at 12:15 AM SGT #

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