Oil: all time high nears $140/barrel
Posted By RichC on June 6, 2008
Crude oil is trading up more than $11/barrel to a record high on a weak dollar do to surprising U.S. unemployment numbers. The number had the strongest rise in 2 decades and analysis at Morgan Stanley suggests prices may reach $150 within a month. Oil is “being used as a hedge by speculative buyers for the weakened dollar,” said Gary Adams, vice chairman of oil and gas consulting at Deloitte & Touche LLP. “We are seeing that the price will continue to go up as investors look for alternatives.” The stock markets have sold off sharply on this news and have those who once believe we were in for a stock market recovery toward the end of the year questioning their thinking. Both the DOW and S&P are down over 2% today. An interesting quote from one market guru is that “he gets it” and points to the fact that demand for oil is high and supply is limited … paraphrased “The millions of Chinese are trading in their bikes for cars.”
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