oldskiier
11-10-2007, 06:00 AM
OIL HITS $105 !!
http://www.theaustralian.news.com.au/story/0,25197,22722861-36418,00.html (http://www.theaustralian.news.com.au/story/0,25197,22722861-36418,00.html)
From correspondents in New York | November 08, 2007
OIL prices hit an all-time high overnight, touching above $US98 ($105) a barrel as speculators took profits from the record rally.
US government data showing a slowdown in fuel demand in the world's largest energy consumer encouraged the selling, dealers said.
The surging price will push petrol prices towards $1.40, although the strong Australian dollar should cushion the rise in local prices.
"Total product demand continues to take it on the chin with prices at lofty levels, a trend we picked up on in the summer," said Chris Jarvis of Caprock Risk Management.
US crude settled down 33 cents to $US96.37 a barrel, after surging to a record $US98.62 earlier in the day. London Brent was down 2 cents at $US93.24 a barrel.
Oil prices have surged about 40 per cent since August as record weakness in the dollar, robust global demand and shrinking inventory levels attracted huge speculative investment.
Some analysts have said oil could climb above $US100 ($107) a barrel in the coming days, even as day-to-day trade remains volatile.
Overnight, dealers said speculators were taking profits from the recent rally and eyeing soft demand figures.
In the past month, demand for fuel in the United States fell 0.4 per cent from a year ago, the US Energy Information Administration said in a weekly report.
The EIA added that crude stockpiles slipped by a smaller-than-expected 800,000 barrels last week to 311.9 million barrels, bringing inventories about 8 per cent below a year ago.
Oil had gained momentum early after the dollar plunged to new lows against the euro as credit market turmoil kept alive the prospects of another interest rate cut by the US Federal Reserve.
The surge brought oil near the inflation-adjusted record peak of $101.70 hit in 1980, when war between OPEC producers Iran and Iraq ignited an oil supply crisis.
This time around, demand, fuelled by exploding growth in China and a steady increase from the United States, has been a major driver behind oil prices more than quadrupling since 2002.
http://www.theaustralian.news.com.au/story/0,25197,22722861-36418,00.html (http://www.theaustralian.news.com.au/story/0,25197,22722861-36418,00.html)
From correspondents in New York | November 08, 2007
OIL prices hit an all-time high overnight, touching above $US98 ($105) a barrel as speculators took profits from the record rally.
US government data showing a slowdown in fuel demand in the world's largest energy consumer encouraged the selling, dealers said.
The surging price will push petrol prices towards $1.40, although the strong Australian dollar should cushion the rise in local prices.
"Total product demand continues to take it on the chin with prices at lofty levels, a trend we picked up on in the summer," said Chris Jarvis of Caprock Risk Management.
US crude settled down 33 cents to $US96.37 a barrel, after surging to a record $US98.62 earlier in the day. London Brent was down 2 cents at $US93.24 a barrel.
Oil prices have surged about 40 per cent since August as record weakness in the dollar, robust global demand and shrinking inventory levels attracted huge speculative investment.
Some analysts have said oil could climb above $US100 ($107) a barrel in the coming days, even as day-to-day trade remains volatile.
Overnight, dealers said speculators were taking profits from the recent rally and eyeing soft demand figures.
In the past month, demand for fuel in the United States fell 0.4 per cent from a year ago, the US Energy Information Administration said in a weekly report.
The EIA added that crude stockpiles slipped by a smaller-than-expected 800,000 barrels last week to 311.9 million barrels, bringing inventories about 8 per cent below a year ago.
Oil had gained momentum early after the dollar plunged to new lows against the euro as credit market turmoil kept alive the prospects of another interest rate cut by the US Federal Reserve.
The surge brought oil near the inflation-adjusted record peak of $101.70 hit in 1980, when war between OPEC producers Iran and Iraq ignited an oil supply crisis.
This time around, demand, fuelled by exploding growth in China and a steady increase from the United States, has been a major driver behind oil prices more than quadrupling since 2002.