Wednesday, January 02, 2008

Scary New Year!

News Item:

"NEW YORK (AP) -- Oil prices soared to $100 a barrel Wednesday for the first time ever, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will continue to outstrip supplies . . . In other Nymex trading Wednesday, February heating oil futures rose 9.28 cents to $2.7422 a gallon while February gasoline futures climbed 8.07 cents to $2.5717 a gallon. February natural gas futures advanced 26 cents to $7.743 per 1,000 cubic feet "

Luckily, these spikes are coming just after everyone maxed out their credit cards for Christmas. Go out and shop, retailers need a good season!

All of this one the heels of the Bhutto assassination and the crisis and potential disaster in Pakistan. Then there's Nigeria and the problems they're having getting oil to market due to their Delta insurgency. But, what's really behind the high price of oil?

AP: "Trading volumes were about 50 percent of normal Wednesday, meaning the price move was likely exaggerated by speculative buying."

See, now that all the money has gone out of the housing bubble, speculators don't have any other place to go besides jacking up the price of commodities and hoping to pull out just as the botton falls out.

Not that anyone should worry about any of this. Beneazir Bhutto's 19 year old son, Bilawal Zardari (who only took his mother's name "Bhutto" a few days ago) is now in charge of the Pakistan People's Party, the largest and most respected Party in Pakistan, along with her sticky fingered husband Asif Ali Zardari (aka "Mr. 10%"). [NYT]

We're in god shape. And it's only the second!


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