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Is black gold (oil) leading a runaway inflation train?
*Bloomberg, by Grant Smith and Christian Schmollinger, May 16, 2008
“Oil Rises to Record Above $127 on Goldman Outlook, China Demand
Crude oil rose above $127 a barrel for the first time after Goldman Sachs Group Inc. raised its oil price forecast amid speculation Chinese diesel purchases will strain limited supplies.
Goldman boosted its crude-oil price forecast for the second half of this year to $141 a barrel, from $107, citing supply constraints. Chinese traders many increase diesel fuel imports to run generators after State Grid Corp. of China said 0.5 percent of China’s total power capacity remains shut after an earthquake on May 12.”
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