Well, well, well. Oil tops $145 a barrel in NY and London

July 3, 2008 at 5:03 am | Posted in Commodities, Economics, Energy, Fossil fuels, Oil, Prices | Leave a comment
Tags: , , , , ,

No surprises there.

Oil Rises to $145.43 Record as Investors Shun Equities, Dollar
By Grant Smith and Christian Schmollinger

July 3 (Bloomberg) — Crude oil rose to a record above $145 a barrel in New York as investors sought an alternative to tumbling stock markets.

Oil has advanced more than 50 percent this year while equity indexes and the U.S. currency declined. European stock prices fell after the Standard & Poor’s 500 Index touched a two-year low. Economists expect the European Central Bank to raise its benchmark rate today, spurring commodity buying as an inflation hedge against a weaker dollar. Summer maintenance at North Sea oil fields is limiting European crude supplies, further supporting prices.

“With equity markets groaning under the pressure of poor economic data and the U.S. dollar out of favor before the ECB decision, monies are flowing into oil,” said Rob Laughlin, a senior broker at MF Global Ltd. in London. “Who would want to be short oil at this moment in time?”
…

Right now, all I can hear is my grandfather’s deep Welsh voice asking me, when I was only knee-high to a grasshopper:

“Did you hear the latest news of the oil field?

“No.”

“Well, well, well.”

😉

If he were around now, he’d lose no time updating his humour to suit current events:

“Did you hear the latest news of the oil price?

“No.”

“Dear, dear, dear.”

On that note, here’s a great post for you that makes sense to me.  It explains quite clearly why speculators are not entirely to blame (though politicians are scrabbling for scapegoats) for rising oil prices:

Myth and Meaning in the Great Oil Game

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