Crude Oil = $120

Well, almost. The May 2008 Futures contract hit $119.90 -- that's the all time high for Crude Oil.

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Here's a quick excerpt from Bloomie:

"Crude oil rose to a record $119.90 a barrel in New York as the dollar dropped to an all-time low against the euro, prompting investors to purchase commodities as an inflation hedge.



The dollar touched $1.60 per euro for the first time after European Central Bank policy makers signaled they may raise interest rates because of inflation. Oil's 24 percent surge this year has pulled gasoline and diesel fuel to records, weighing on an economy already reeling from a credit crisis. Crude oil for May delivery advanced $1.69, or 1.4 percent, to $119.17 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures reached $119.90 today, the highest since trading began in 1983. Prices are up 88 percent from a year ago. The May contract expired today. The more-active June futures contract rose $1.35, or 1.2 percent, to $117.98 a barrel."

There is a huge contingent that simply refuses to believe in the rally in Oil -- since around $40.

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Source:

Crude Oil Reaches All-Time High Above $119 on Record Euro

Mark Shenk

Bloomberg, April 22 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=aGASa6pCjCrs&

Tuesday, April 22, 2008 | 03:00 PM | Permalink | Comments (47) | TrackBack (0)

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Comments

I believe. I believe this is no different than any of the other messes Wall Street has helped create. There is underlying economic demand but even that is only marginally based on reality. Wall Street pushes because it realizes that additional economic demand has no other choice than to pay whatever it is. That is, until demand finally hits a wall. Some people believe this is demand-pull. Haha. The premium put in by massive changes in the participation level of futures market by 'managed' money is responsible. Finally it appears some in the government have realized there is a stench associated with this as well.

Posted by: bdg123 | Apr 22, 2008 3:43:45 PM