From Deseret News archives:
Oil hits $134
Declining dollar helps to drive record prices
Supply worries, rising demand and a slumping dollar are conspiring to make filling up the car and paying for just about everything else a growing burden for Americans.
With gas and oil prices setting new records on a daily basis, many analysts are beginning to wonder whether anything can stop prices from rising. There are technical signals in the futures market, including price differences between near-term and longer-term contracts, that crude may soon fall. But with demand for oil growing in the developing world, and little end in sight to supply problems in producing countries such as Nigeria, few analysts are willing to call an end to rising oil prices.
Oil's Wednesday rally was fed in part by a report from the Energy Department's Energy Information Administration, which said crude inventories fell by more than 5 million barrels last week. Analysts had expected a modest increase.
Investors seized on the inventory report to boost prices Wednesday, but traders interested in pushing prices higher are increasingly picking and choosing which news they wish to pay attention to, analysts say.
"Even if this report was bearish, with the momentum the way it is right now, it wouldn't matter," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
Crude prices first passed $130 overnight on concerns about demand and a weaker dollar. Analysts say crude has been boosted in recent days by especially strong demand for diesel in China, where power plants in some areas are running desperately short of coal and certain earthquake-hit regions are relying on diesel generators for power.
The dollar, meanwhile, weakened against the euro Wednesday. Investors see hard commodities such as oil as a hedge against inflation and a weak dollar, and they pour into the crude futures market when the greenback falls. A weak dollar also makes oil less expensive to buyers dealing in other currencies.
Many investors believe the dollar's protracted decline over the past year has been the most significant factor behind oil's rise from about $66 a barrel a year ago to today's highs.
Recent comments
Some folks are so ignorant of facts it's truly amazing. People think...
no drilling !! | May 22, 2008 at 9:59 a.m.
might as well dig deeper into your wallet and fuel up that BIG SUV...
nothing we can do | May 22, 2008 at 9:46 a.m.
Our efforts are better spent on becoming the world leaders in...
Concur with Really | May 22, 2008 at 9:39 a.m.
- Man critically injured in accident 6:47 p.m.
- Trial begins in slaying 6:44 p.m.
- 2 families divided over slaying 6:22 p.m.
- Provo fire displaces 4 families 6:22 p.m.
- Brems outlasts 2nd round of votes 6:06 p.m.
- Boy's quick thinking saves life 6:05 p.m.
- Turner considers County Council run 6:00 p.m.
- Gifts for gamers 5:27 p.m.
- Acquired immunity may not help 5:15 p.m.
- Mitchell called intelligent, controlling 5:11 p.m.
- Hall's pain reflects self-betrayal
- Y. student vanished in China
- Max Hall issues apology
- Utes won't respond to Hall
- Hall reprimanded by MWC
- Cougs begin bowl preparations
- Boy shot following traffic stop
- Mitchell called intelligent, controlling
- Matthews passes new Jazz tests
- U. eyes bowl for redemption
- Hall mouths off about hate of Utah
898 - Cougars beat Utes in overtime
481 - Max Hall issues apology
374 - Hall reprimanded by MWC
335 - Hall's pain reflects self-betrayal
298 - Utes won't respond to Hall
235 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
119 - Religion in politics is tiresome
102
If you wait until Cyber Monday to shop, you may miss some hot deals.
I hope someone can identify that punk. It is a shame that whack jobs like...
........soon. Utah (and Boise St.) will leave for the Pac-10.
Sociopaths do not have a conscience, so I doubt they care what the difference...
Yes, there are so many shopping choices in Burley, ID. You will end up in...
Maybe the Whittinghams and Kyle have no response because they are exercising...
Any country who pays teachers $42,000 per year, but a corporate exec $12...
The last three Presidents have smoked pot. It obviously did not destroy their...
It's only been 5 years, whats the hurry? The state has plenty of money for...
You still have women's gymnastics. Scoreboard: BYU 26 - Utah 23
You sir are an idiot...I would love see any evidence of Mrs. Max Hall or his...


