I Love The Smell of Oil Futures in the Afternoon

The New York light, sweet crude oil future hit a brand new all-time high, closing at $63.94 per barrel today, and trading — for a time — at $64. Analysts and traders see no downside right now, but two weeks ago nobody saw any upside either. Between a bunch of refinery outages last week, and lingering concerns following King Fahd’s death (and the continued closure of the US consultes and embassy in Saudi Arabia), people who want crude oil (and people who want to profit from trading “paper barrels,” otherwise known as speculators) are right now convinced going long — having contracts to sell oil or the option to get those contracts — is the way to go.

For the time being, they are probably right. (Though this is subject to change at any time.) Next stop for this train — sorry, bus — is $65!

(And I apologize for getting all giddy and excited about this, but it is part of my job. Kind of. My office mates are annoyed too, if it’s any consolation. They all own automobiles…)

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3:42 pm on August 8, 2005