Will the New Year bring three-figure oil prices?
*CNNMoney, January 2, 2008:
"Oil pushes to $100
Oil prices kicked off the first trading day of 2008 by hitting a new
high of $100 a barrel Wednesday on violence in oil-rich Nigeria, the
prospect of more interest rate cuts, a halt in Mexican imports and the
expectation of yet another drop in U.S. crude supplies.
U.S. crude for February delivery jumped $4.02 to $100 a barrel on the
New York Mercantile Exchange. The previous trading record was $99.29
set Nov. 20. Oil prices ended 2007 by gaining nearly 60 percent for the
year, the largest jump this decade.
'This market is really gonna fly,' Ira Eckstein, president of Area
International Trading Corp, said from the NYMEX floor.
In Nigeria, bands of armed men invaded Port Harcourt, the center the
oil industry Tuesday, attacking two police stations and raiding the
lobby of a major hotel, The Associated Press reported. Four policemen,
three civilians and six attackers were killed. The Niger Delta
Vigilante Movement claimed responsibility for the attack.
A surprise fall in manufacturing activity sparked fears of yet another
interest rate cut from the Federal Reserve. Interest rate cuts
generally cause the dollar to fall - and oil prices rise - as investors
bail out of U.S. equities and into commodities."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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