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.

Post a Comment:

Comments are closed for this entry.

« Crude oil hits $114.... | Main | Westinghouse strikes... »

Most popular blog postings on lowem.log :

1. 2010 Honda Civic Hybrid preliminary specifications released
2. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004
3. How to insert currency exchange rates into Google Spreadsheets
4. Live spot gold price quotes chart on COMEX
5. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
6. Singapore MRT rail network length to double by 2020
7. Singapore property market : Home prices fall 13.8% in Q1 2009
8. 2010 Honda Insight specifications released : 41 mpg, 1.3L, 98hp, i-VTEC, CVT

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Baltic Dry Index falls 93% as shipping rates plunge, signalling global economic collapse
3. 2010 Honda Civic Hybrid preliminary specifications released
4. 2010 Honda Insight specifications released : 41 mpg, 1.3L, 98hp, i-VTEC, CVT
5. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
6. Peakoiler buys 2008 Honda Civic Hybrid FD3
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore SIBOR rate falls to 0.69% in Jan 2009, lowest since Apr 2004