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2nd-Jan-2008 07:41 pm
Oil hits record $100
NEW YORK (Reuters) - Oil prices vaulted to a record $100 a barrel on Wednesday as violence in Nigeria, tight energy stockpiles and a weaker dollar triggered a surge of speculative buying, dealers said.

Oil's climb to the psychologically key triple-digit price helped send stocks tumbling on Wall Street and further darkened an already gloomy economic outlook in the United States, which has been battered by a housing crisis and credit crunch.

"Oil hitting $100 a barrel has sparked some concerns about the consumer and inflation," said Todd Salamone, vice president of research at Schaeffer's Investment Research.

U.S. crude traded once at $100 a barrel, up $4.02, before easing back to settle $3.64 higher at $99.62. It remains below the inflation-adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution.
3rd-Jan-2008 10:32 am (UTC)
Yes, and this is all on speculation of what people will need. What other business lets you charge based on speculation?

Gee, let me see. I think we'll need $15,000 for medical costs this year so we'll tell Larry's employer that he'll have to increase his salary on the speculation of what we might need. Yeah, that would go over like a lead balloon.

Larry spends about 1/5 of his take home pay each week for gas and we don't go anywhere else. He goes straight to work, comes straight home. We used to go to movies every weekend, out to eat occasionally,visit relatives, take day trips, and had a second car so Jill and I could get out.

We sold the car due to gas and upkeep costs.

Now Larry buys the groceries and such right after work because there is a store next door to his job and Jill and I get out of the house "maybe" once a month if we're lucky.

It reminds me of the "oil shortage" back in the 1980s. Yet, here we are 28 years later and we again have a shortage. It becomes short only because they decide it does. During the late 1980s and the 1990s there wasn't a shortage. Did they lose it and find it again? This is just the good old boys doing business as usual.

By the way loved the Christmas picture in the previous post!
Hugs, Christina
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