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

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.

Friday, June 15, 2007 08:48AM Report Comment
 

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.

Friday, June 15, 2007 10:02AM Report Comment
 

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.

Friday, June 15, 2007 10:32AM Report Comment
 

4. David20040_0 said...

And yet oil will decrease to $55 a barrel when the Canadian oil sands are up and fully operational.

Friday, June 15, 2007 01:19PM Report Comment
 

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.

Friday, June 15, 2007 01:21PM Report Comment
 

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

Friday, June 15, 2007 02:27PM Report Comment
 

7. harold said...

Oh yes, JU - sorry I mis-read your post.

Friday, June 15, 2007 02:43PM Report Comment
 

Add comment

Username   Admin Password (optional)
Email Address
Comments
  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Main Blog | Archive | Add Article | Blog Policies