Oil hits $100 level!!!

**froshie1** · January 3rd, 2008 06:47 AM

Source of article: http://business.inquirer.net/money/b...icle_id=110042

Yari na naman tayong lahat dito!

Oil hits $100 for first time

On the New York Mercantile Exchange (Nymex) at 1720 GMT, a barrel of "light sweet crude" for February jumped $3.48 to $99.46. Shortly before, it had reached the exact price of $100 a barrel.

After flirting with the record twice in November, "we finally hit the $100 barrel oil and we will hit again if supply remains tight compare to demand," said Bart Melek, an analyst with BMO Capital Markets.

In London, Brent North Sea crude for February soared to a record $97.05 per barrel. It later stood at $96.85, up $3 from its close on Monday. Markets were closed Tuesday for the New Year holiday.

"Oil is higher this morning on more violence in Nigeria, concerns about stability in Pakistan, oil-inventory expectations and good old-fashioned cold winter weather," added Phil Flynn from Alaron Trading.

At least 12 people were killed over the New Year in the Nigeria's oil capital Port Harcourt, raising fears that crude output in the oil-producing nation could be further reduced.

Gunmen attacked two police stations and a hotel, a military officer in the city said on Wednesday.

"With the military and the militant warlords engaged in a violent tit-for-tat, the risk for oil disruptions in Nigeria remains higher than in the past few months," said Petromatrix analyst Olivier Jakob.

Violence by militants has reduced Nigeria's oil output by about a fifth since the start of 2006.

The unrest "raises concerns that a return to chaos could begin to disrupt international oil flows again," said John Kilduff from MF Global.

Elsewhere, an official report due Thursday was expected to show that crude oil inventories in the United States, the world's top energy consumer, have fallen for a seventh week in a row.

Falling inventories amid the northern hemisphere winter when demand for heating fuel surges is helping to lift prices.

"Crude prices are drawing some support from [expectations of] a further decline in crude stocks in a weekly US inventories report," said Sucden brokerage analyst Andrey Kryuchenkov.

"Oil stocks are near a three-year low, with more withdrawals expected in this Thursday's delayed inventory report," added Kilduff.

Oil prices doubled last year, with New York crude reaching a record high of $99.29 on Nov. 21.

New York prices had briefly approached $98 late last week after the assassination of Pakistan opposition leader Benazir Bhutto.

David Moore, a commodities strategist with the Commonwealth Bank of Australia, said Wednesday that geopolitical tensions in Pakistan and the Middle East had "created a risk premium" for the oil market.

**Hanren** · January 3rd, 2008 08:53 AM

Hay ..ganda naman ng pasok ng taon

...its a sign of the times

**VtEC** · January 3rd, 2008 09:09 AM

ok lang yan, "malakas" naman ang peso.para ko ng nakikita, rally nanaman ang mga jeepney / bus operators.samantalang ang mga pobreng juan dela cruz dina alam kung pano magghigpit ng sinturon.para ngang mapuputol na sa kakahigpit e.

**shadow** · January 3rd, 2008 09:21 AM

wait nalilito ako eh, do we based our prices sa "sweet crude" ng US, I think sa dubai prices dapat tayo mag based...

**uls** · January 3rd, 2008 10:31 AM

Expect oil prices to go higher this year. Also food prices (grains, meat).

Kasi there's a lot of money out there looking for high returns.

Volatile ang US stocks ngayon. So money is moving out of stocks and moving into commodities.

**niky** · January 3rd, 2008 04:49 PM

It's all speculation... a lot of people believe the price is inflated because of the high Chinese demand and instability in the Middle East. Besides, if you adjust for inflation, Crude was already at $100 per barrel back in 1980.

You'll notice that the sky isn't falling yet... sure, prices are going to get tight, but oil hasn't reached the prie point at which economic meltdown occurs... at least, not yet...

**uls** · January 3rd, 2008 05:32 PM

Ang gulo gulo ng mundo ngayon...

Naghahanap ng safe haven ang mga may MALAKING pera...

Hindi na safe haven ang USD.

Napupunta ang pera sa commodities.

Tulad ng gold. (all time high)

Tulad ng oil. (all time high)

Tama si Niky.

Speculators.

Sila ang responsible.

Huge amounts of money are looking for places to park.

**Monseratto** · January 3rd, 2008 08:57 PM

On the positive side, the pesos ended at 41.08. Baka tumuloy ng 40 level bukas.

**ghosthunter** · January 3rd, 2008 09:12 PM

even auto-LPG prices have risen quite a bit since summer time.

**uls** · January 3rd, 2008 10:29 PM

Every major food crop is reaching record highs.

http://www.bloomberg.com/apps/news?p...7R8&refer=news

Gold, other metals too

http://www.bloomberg.com/apps/news?p...EUY&refer=home

Fund managers are using commodities as a hedge.

Bad

very bad