NYMEX - September Crude Oil Closes At $78.21 - New Record Closing Price - Forbes

[hatrack]

Just in case anybody was paying attention . . .

NEW YORK - Commodity prices climbed broadly Tuesday as crude oil closed above $78 a barrel for the first time amid expectations for rising demand from U.S. refineries.

The September contract for light, sweet crude oil settled at $78.21, up $1.38 on the New York Mercantile Exchange. Oil's increase helped tug gasoline, gold and copper prices higher. The commodities markets, which often find support in a falling U.S. dollar, shrugged off the currency's slight gains on Tuesday against the euro and other world currencies.

With the government's Energy Information Administration reporting weekly petroleum inventory figures on Wednesday, analysts estimate refinery demand for crude oil grew last week amid an expected ramp-up in the use of production capacity. Analysts polled by Dow Jones Newswires forecast a 690,000-barrel pull on U.S. crude oil stockpiles in the week ended July 27.

EDIT

"The financial players who consider oil futures an asset class continue to plow money into holding length in crude oil," said Tom Kloza of the Oil Price Information Service. A "long" position is a bet prices will rise. "My own sense is we're nearing the crest of a typical seasonal high tide." Kloza noted that there is a "template" for rising oil prices in the summer, and the market may be show enough momentum to push crude prices to a new all-time high. But once the peak comes, the market could be "one headline away from $50 crude." (Ed. - emphasis added.)

EDIT

:rofl: :rofl: :rofl: :rofl: :rofl:

http://www.forbes.com/feeds/ap/2007/07/31/ap3973082.html

[phantom power]

1. I don't even get it. Kloza means "one *good* headline?"

"hey, all we need is one lucky break, and crude could plummet to $50 barrel!"

How our standards have fallen :evilgrin:

[happyslug]

4. Krugman observed last week, right wing economist think oil prices is a bubble

While the Housing market is a sound investment. These guys look at what OPEC says is its oil reserved and accepts them as 100% accurate, when they had good reasons to lie before and better reasons to lie now. Krugman avoids the issue of Peak oil while mentioning (Krugman mentions he would reliable information on Saudi's oil reserves to make a decision on peak oil).

I can see a couple of bad headlines that would make us WANT oil to be $100 a barrel (For example the West Antarctic Ice Sheet collapse next Spring, there goes ALL the world wide ability to load and unload oil and the price will zoom). The Right Wing do NOT want to face Peak Oil, for to face it, means to address it, and the ways to address it are NOT want the right wing want (i.e a high tax on gasoline to discourage use of cars, which will not only reduce the demand for oil, but kill any new suburbs being built today). Use the tax money to develop alternatives to a oil base society.

[Speck Tater]

2. More likely we're one headline away from $100 crude. (nt)

[phantom power]

3. Stop it, you're killing Tinkerbell.