Monday - October 29, 2007

Oil Races to New Highs

A weak dollar, increased demand, political instability, and no new drilling in the U.S. have pushed oil to a new high of $93 a barrel. 

Oil hit a new record high of $93.80 and the dollar struck a new low on Monday as investors showed their growing certainty that the US Federal Reserve will cut interest rates on Wednesday.

The same conviction also saw gold approach $800 a troy ounce – its highest level for 28 years – while equities made gains. The move into gold reflects how investors fear rising inflation from the twin forces of higher oil prices and a weaker dollar.

Weighing on the dollar was the outlook for lower borrowing rates versus those of other economies when a two-day meeting of the Fed concludes on Wednesday. Read more....

Author: Satanic Source
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