Apr 10, 2006

Oil Approaches $69 Per Barrel

(New York) Oil prices rocketed toward record levels today as tensions over the Iranian nuclear program and possible US military action - including tactical nuclear strikes - created a climate of jittery investors.

Adding to the unsettled Middle East picture was the specter of continuing supply disruptions in Nigeria.

U.S. crude rose $1.35 cents to $68.74, threatening to close in on last August's $70.85 record. London's Brent North Sea crude was up $1.64 to $68.93.

"The market had become a bit too comfortable expecting a diplomatic solution in Iran," said Tobin Gorey, commodities strategist at the Commonwealth Bank of Australia. "Whether it ever comes to military action or not, it certainly shakes some complacency out of the market."

Some industry analysts believe that oil may hit $85 per barrel during the peak summer demand, which could send gasoline prices skyrocketing to $3.50 a gallon or more in the US.


Anonymous said...

Drip, drip, drip.

The sound of blood or oil, or both?

Hooda Thunkit said...

So, Mike, are you changing your investment strategy in favor of energy stocks yet?

The situation won't change until we (re)discover oil here in the good ole USA.

Building a few new refineries and Nuke reactors might help too.

So, as you can see, energy stocks will be great until we conserve (dirty word alert) or we produce domestically (nother dirty word/thought).

NIMBY (lack of) power!
NIMBY (lack of) power!
NIMBY (lack of) power!

Sorta like, "Dyslexics Untie!"

historymike said...

Heh, heh.

I am an advocate of professional management and a diversified portfolio, Hooda.

I used to play the market a lot (when I was a budding entrepreneur), but these days I'll take a boring 8% over the roller coaster ride of day trading.

Anonymous: Not to be a drooling war booster (I am not), but the blood was dripping when Sadaam controlled Iraq, too.