Friday, Jun 15, 2007
Brent crude nearly reaches $71
BBC News: Oil price tips over $70 a barrel
Oil prices tipped beyond $70 a barrel in London, fuelling fears over supply. The prices were reacting to earlier US data showing disappointing inventories. Brent crude rose $1.02 higher to $70.96 after breaching $71 a barrel. New York sweet crude was $1.39 up at $67.65.
Posted by webmaster @ 06:52 AM (174 views) Add Comment
7 Comments
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1. Pr said...
Expect to see more of this. $80-90 / barrel by Autumn if we have a bad hurrican season and if US gasoline inventories don't catch up. This is particularly relevant to UK interest rates and UK house prices given that the Bank of England based much of its recent inflation reports on the assumption that oil will recede to $40 / barrel. It takes a couple of years for oil prices to feed through because of the lag between oil contract purchase and delivery, the lag between delivery and production and because manufacturers and retailers will tend to buffer higher costs with lower margins initially, unless prices remain high and lower margins trigger profit warnings. This bodes badly for long term interest rates and suggests a bearish sentiment for short, and, in particular, long term interest rates, just at the point when many are renuing long term mortgages from historically low rates 2 years ago.
2. japanese uncle said...
He who rules the crude rules the prices of all under the Sun.
Personally, switching from Tesco to Asda saves me at least 5%, nearly offsetting the inflation, as far as grocery is concerned.
3. harold said...
"Personally, switching from Tesco to Asda saves me at least 5%, nearly offsetting the inflation, as far as grocery is concerned."
...and pours yet more money into the pocket of Tessa Cohen's family. No thanks.
4. David20040_0 said...
And yet oil will decrease to $55 a barrel when the Canadian oil sands are up and fully operational.
5. David20040_0 said...
Even though the oil price is increasing again I bet the BoE will say this isn;t affecting the CPI but when oil drops after the US driving season they will claim CPI is being driven down by lower gasoline prices.
6. japanese uncle said...
Don't get me wrong. I am switching from Tesco to Asda, not the other way round.
Tessa Cohen = TESCO for short
7. harold said...
Oh yes, JU - sorry I mis-read your post.