Oil Moves Above $90 On The Way To $100 A Barrel
The price of oil hit $90.50 today and this does not appear to be the end of its move up. OPEC now makes a habit of blaming crude prices on speculation. Chinese consumptions of imported oil rose 18% in the first eight months of the year.
The Middle East unrest continues to concern traders, but a Venzuelan president who seems on the verge of a nervous breakdown and troubles in Nigeria will continue to drive fear about supply interruptions.
The hurricane season may be over, but short supply and a legion of reasons both true and false about whether a slower economy will cut demand are going to push the number above $100.
Douglas A. McIntyre