Crude oil advanced to a record $101.32 barrel in New York today amid rising demand and concern inflation will erode the value of alternative investments.Global oil demand will rise 1.7 million barrels a day to 87.6 million barrels a day this year, the International Energy Agency said in a monthly report last week. The U.S. Energy Department and the Organization of Petroleum Exporting Countries also expect daily global consumption to rise by more than 1 million barrels this year.
"We should be looking at oil in the $120-to-$150 area by the end of the year without any major changes," said Peter Schiff, chief executive officer of Darien, Connecticut-based brokerage Euro Pacific Capital, which has $1 billion in customer accounts. www.iht.com
So oil is going up because everything else is a bad investment. This somewhat runs against the idea that in a recession (which isn't officially one) demand declines. It would seem that any scenario is good for the oil business for one good reason. It is the dominate energy business by a wide margin.
Anyone for $4 gasoline for Christmas?
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