SocraticGadfly: Oil back over $100/bbl

February 19, 2008

Oil back over $100/bbl

While oil had breached this mark before, it’s the first time the futures market closed a day above the magic priceline. The explosion at a refinery in Big Spring, Texas gets the blame. But, doesn’t this show, in the face of oil’s alleged recession concerns driving prices down into the low $90s recently, that the oil market is getting even tighter.

Need I mention the magic phrase, Peak Oil.

Meanwhile, the Street appears to concur that, recession talk aside, inflationary fears are still lurking.

And, with the market finishing over $100/bbl, not just hitting an intraday peak, we’ll see what psychological momentum carries over.

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