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It wasn't that long ago that oil breached the $30 "ceiling." And the word was it was temporary; the result of some unexpected short term problems. Now as oil breaks $100 per barrel under a steady stream of "temporary" challenges, you've got to wonder where it will end.
How can inflation possibly be kept in check in the face of such massive increases in energy costs?
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.
US 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.
London Brent crude rose $3,99 to $97,84.
Crude prices jumped 58% in 2007, the biggest annual gain this decade. Oil prices have nearly tripled since 2000 -- driven by rising demand in China and other developing countries, tight stockpiles and geopolitical turmoil.
extracts from M&G article here
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.
US 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.
London Brent crude rose $3,99 to $97,84.
Crude prices jumped 58% in 2007, the biggest annual gain this decade. Oil prices have nearly tripled since 2000 -- driven by rising demand in China and other developing countries, tight stockpiles and geopolitical turmoil.
extracts from M&G article here
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