Oil price soars above $US45

Oil prices have shot above $US45 for the first time driven by limited exports from Iraq and the ongoing financial crisis at Russian oil giant Yukos, analysts said.

New York's light, sweet crude for September delivery hit $US45.04 per barrel in early deals.

Traders said profit-taking later pushed the contract down 49 cents to $US44.35 from Monday's record-high close of $US44.84.

Brent North Sea crude oil for September fell 31 cents to $41.25 per barrel in late trading in London, below Monday's record closing peak of $US41.56.

Unrest in Iraq kept the market on boil, said Oppenheimer market analyst Fadel Gheit.

"The situation in Iraq is definitely totally out of control," Mr Gheit said.

"As long as the Iraqi situation remains volatile, oil prices will remain high," adding that the market could be looking at prices reaching $US50 per barrel within two weeks.


http://www.abc.net.au/news/newsitems/200408/s1173424.htm

This is getting to be very scarey.....

Pretty soon we'll be paying what the rest of the world has been paying for a really long time.

I only drive a car because I have to, and I'm glad that it's great on gas. If the price gets above $2.50 per gallon, I'm chucking my current job (30 mile commute each way) and getting a job as a union shelf-stocker at the Kroger within walking distance from my house.

preceeded by a sharp rise in inflation

Inflation was very modest, never getting much above 3%, if it even got there.

What you are talking about is the fact that most recessions are brought about, at least in part, by constrictive monetary policy by the central bank of a country. The reason they raise rates and reduce the rate of growth in money supply is because they percieve inflationary pressures, whether inflationary pressures are there or not.

nm

Post this question in the Daily Market Watch thread and somebody will explain it to us all! Prolly safe to say the price increase at the pump will lag a bit.

:hi:
dbt

Deceased Col. Fletcher Prouty, former Pentagon national security briefer made the observation that US mideast policy had a two fold objective, first to secure supplies of oil, and then to obstruct them in order to keep prices artificially high.

have reached the ozone layer.