Commodities roundup: Oil rally unleashed, how much more left

September 22, 2008

Three months of U.S. crude oil futures“Short squeeze, crude expiration — that’s it in a nutshell.”

So says Tom Knight of Truman Arnold in Texas of the near 16% surge in U.S. crude for October to $120.92 a barrel. Among other factors in the energy markets today:

* TARP, the Sec. Paulson-led rescue plan for U.S. banks, has changed sentiment for oil, some analysts are arguing. (A 2% rally in gold amid a weaker dollar lends some support to an re-allocation assumption)
* Saudi Arabia trims oil supply to majors
* Nigerian rebels declare unilateral cease-fire
* U.S. oil sector recovering from Ike

How much more to go? “The dollar is down, the stocks are down and now investulators are jumping back into oil,” says Peter Beutel, analyst at Cameron Hanover in Connecticut. More views on the market today are here.

Comments

A strong president would close down trading on commodities and stocks until things settle down and agreement is reached. We, unfortunately, do not have one of these in stock, so our people and economy must suffer. How about letting Warren Buffit run the country until we can elect a new president who can run the country????

Posted by Fred Belz | Report as abusive
 

Google “Peak Oil “

Posted by Tom Brown | Report as abusive
 

Why do you people insist on making a buck while tearing down your country around you. Don’t you get it?

Posted by KD | Report as abusive
 

Doris Frankel informed your readers that ETF shed 114% of its value when the price went from $63.75 to $29.02. Please tell Doris that this is a 54% reduction; there is no such thing as a 114% reduction. If the price went from $63.75 to -0-, the reduction would be 100%.

Posted by Gary Jarmon | Report as abusive
 

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