Oil Rises to Record After U.S. Reports Unexpected Supply Drop

Robert Tuttle
Bloomberg
Wednesday, July 2, 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeYHEXyQE1d8&refer=home

(oil really needs to stop being traded but this is a plot to bring it up 
to $200 a barrel set by your friendly neighbourhood globalist scum if 
they want to stimulate the economy, how about $.25 cent a gallon/litere 
gas!)

Crude oil futures rose to a record above $144 a barrel in New York after 
a U.S. government report showed an unexpected decline in inventories.

Supplies dropped 1.98 million barrels to 299.8 million last week, the 
lowest since January, the Energy Department said. Analysts in a 
Bloomberg News survey had predicted the report would show a 500,000 
barrel rise in inventories. Prices also climbed as the dollar weakened.

“We dropped about 2 million barrels on crude and most everyone was 
looking for a slight build,” said Addison Armstrong, director of market 
research at TFS Energy LLC in Stamford, Connecticut. “That leaves us 
somewhere around 7 to 8 percent below normal on crude stocks.”

Crude oil for August delivery rose $2.60, or 1.8 percent, to settle at 
$143.57 a barrel at 2:55 p.m. on the New York Mercantile Exchange. 
Futures touched a record $144.32 after the close of floor trading and 
have doubled in the past year.

Brent crude for August delivery rose $3.59, or 2.6 percent, to $144.26 a 
barrel on London’s ICE Futures Europe exchange. Futures touched a record 
$144.95 a barrel.

Oil’s appeal as a hedge against inflation may rise if the European 
Central Bank increases interest rates tomorrow, causing the dollar to 
fall. The European Central Bank will lift its 4 percent benchmark main 
refinancing rate by a quarter-percentage point tomorrow, according to 57 
of 58 economists surveyed by Bloomberg News.
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