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Log inAfter breather, oil rallies near record highs
After breather, oil rallies near record highs
by Outspoken on Fri May 23, 2008 7:17 pm
After breather, oil rallies near record highs
AFP News Service
NEW YORK (AFP) - Crude oil prices rallied near this week's sky-high records Friday on concerns that global output will not satisfy rising demand and speculation on the back of a weak dollar.
New York's main oil futures contract, light sweet crude for July delivery, rose 1.38 dollars to close at 132.19 dollars a barrel, shy of its record close at 133.17 dollars reached Wednesday. It struck an intraday peak of 133.71 dollars.
In London, Brent North Sea crude for July delivery hit a high of 133.74 dollars then settled at 131.57 a barrel, up 1.06 dollars.
On Thursday, Brent struck an all-time high of 135.14 dollars and New York crude reached a record 135.09 dollars, before both contracts plunged as investors banked profits.
The two benchmark contracts have climbed more than six dollars in a week.
"While we do expect this bubble to burst, and make no mistake about it this bubble will burst, we are not ready to say yesterday's profit-taking selloff was the start of the correction," said the latest daily Schork Report on energy markets published Friday.
Oil prices crossed 100 dollars for the first time in January and hit 120 dollars by the start of May. They topped 130 dollars on Wednesday after government data showed US energy inventories surprisingly fell last week.
Oil prices also are supported by unrest in oil-producing countries, OPEC's unwillingness to hike output, and a weak dollar which makes commodities priced in the US unit cheaper for buyers using other currencies.
Speculators have poured into commodities as a hedge against inflation as the dollar sinks.
"With the surge in oil prices starting to look increasingly like a speculative mania, further increases are likely in the short term as more and more speculative capital is sucked into the vortex created by rising prices," said Shane Oliver, chief economist of AMP Capital Investors in Sydney.
Oil at 150 dollars a barrel "is now just a few weeks trading away," he said.
http://news.yahoo.com/s/afp/20080523/bs_afp/commoditiesenergyoilprice_080523205509;_ylt=AmedA759KDPFKwIUuDGFIO6s0NUE
AFP News Service
NEW YORK (AFP) - Crude oil prices rallied near this week's sky-high records Friday on concerns that global output will not satisfy rising demand and speculation on the back of a weak dollar.
New York's main oil futures contract, light sweet crude for July delivery, rose 1.38 dollars to close at 132.19 dollars a barrel, shy of its record close at 133.17 dollars reached Wednesday. It struck an intraday peak of 133.71 dollars.
In London, Brent North Sea crude for July delivery hit a high of 133.74 dollars then settled at 131.57 a barrel, up 1.06 dollars.
On Thursday, Brent struck an all-time high of 135.14 dollars and New York crude reached a record 135.09 dollars, before both contracts plunged as investors banked profits.
The two benchmark contracts have climbed more than six dollars in a week.
"While we do expect this bubble to burst, and make no mistake about it this bubble will burst, we are not ready to say yesterday's profit-taking selloff was the start of the correction," said the latest daily Schork Report on energy markets published Friday.
Oil prices crossed 100 dollars for the first time in January and hit 120 dollars by the start of May. They topped 130 dollars on Wednesday after government data showed US energy inventories surprisingly fell last week.
Oil prices also are supported by unrest in oil-producing countries, OPEC's unwillingness to hike output, and a weak dollar which makes commodities priced in the US unit cheaper for buyers using other currencies.
Speculators have poured into commodities as a hedge against inflation as the dollar sinks.
"With the surge in oil prices starting to look increasingly like a speculative mania, further increases are likely in the short term as more and more speculative capital is sucked into the vortex created by rising prices," said Shane Oliver, chief economist of AMP Capital Investors in Sydney.
Oil at 150 dollars a barrel "is now just a few weeks trading away," he said.
http://news.yahoo.com/s/afp/20080523/bs_afp/commoditiesenergyoilprice_080523205509;_ylt=AmedA759KDPFKwIUuDGFIO6s0NUE
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Plato (427-347 BC)
