Oil Hits New High on Supply Fears

[RedEarth]

....makes me wonder if stagflation is right around the corner...

LONDON (Reuters) - Oil prices struck a new high on Monday on simmering concern that rapid fuel demand growth will outpace global supplies at a time when traders fear a sabotage attack on the Middle East oil infrastructure.



U.S. light crude reached $41.85 a barrel, the highest price since the New York Mercantile Exchange launched the crude contract in 1983. Later it eased to $41.28, down 10 cents on the day. London's Brent crude eased 12 cents to $37.74 a barrel.


"The short-term is dominated by low gasoline stocks in the United States and Europe and deterioration of the Middle East situation. Neither is likely to change much in the months to come," said Societe Generale economist Frederic Lasserre.


Low U.S. gasoline inventories ahead of peak demand in the summer months, a surge in global consumption driven by healthy economic growth and worries that instability in the Middle East may disrupt supplies have attracted investment hedge funds to oil in droves. Crude prices are up $9 a barrel, or 28 percent, since the end of last year.


more.....

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20040517/bs_nm/markets_oil_dc

[wtmusic]

1. Last chance for the oil companies to stick it to the American Public

:cry: bye, bye, dubya :cry:

[David__77]

2. This price is nothing--it could go much higher.

Venezuela, Arab countries... If war is taken to supply routes, it could devastate the world economy.