Friday - October 26, 2007

A Suggestion from Hell as Oil Climbs to $92 a Barrel 

We in Hell have a suggestion for the United States. Open the oil fields in Alaska, California, and Florida. The rest of the world is screwed up. There will always be tensions in Nigeria, Venezuela, and the Middle East. 

And to the left, isn't supporting high oil prices by not allowing American companies to drill for oil off of our shores a regressive tax upon the poor? The very people you claim to care for, the very people who can't afford $3 a gallon for gas....

Drilling in the United States will bypass this market craziness and take some heat off of our weak economy.

Oil rallied to a fresh record high above $92 a barrel on Friday as the dollar tumbled to a record low, Washington imposed new sanctions on Iran and gunmen shut more oil production in Nigeria.

Oil's bullish momentum has pulled in increasing amounts of speculative investment and waves of technical buying have been triggered as U.S. oil pierced successive lines of resistance.

At 11:07 a.m. EDT U.S. crude was up 74 cents at $91.20, off a record $92.22. It is closing in on its inflation-adjusted high of $101.70 seen over the course of April 1980, a year after the Iranian revolution and at the start of the Iran-Iraq war.

London Brent was up 72 cents at $88.20.

Institutional money has been flooding into oil and other commodities since the U.S. Federal Reserve cut interest rates in August.

"It's more or less nobody wants to be short in this market," said Markus Mezger, who manages investment portfolios at commodities hedge fund Tiberius.

But sentiment is now overheated and the supply/demand picture is not so supportive.

"We don't find that prices are supported fundamentally above $80," Mezger said. "On the demand side, the world economy might not be in such a good shape," he said. "Supply is increasing from OPEC from November on and we think there might be a second decision to increase output again." Read more....

Author: Satanic Source
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