Triple-digit crude prices almost upon us
Posted Jul 14th 2006 4:17PM by Michael Canfield
Filed under: Bad news, Industry, Exxon Mobil (XOM)
Crude oil for August delivery reached $78.40 today, breaking the record set yesterday, before backing off a bit to a still higher-than-Thursday $77.80 a barrel, on the New York Mercantile Exchange (NYMEX). Factors include escalating conflict between Israel and Lebanon and supply concerns in the world's eighth-largest exporter: Nigeria. Another open-issue is what Iran will do -- possibly further embroiling itself with the United Nations Security Council after ignoring a package of Western incentives offered to get it to curb its nuclear program just recently --or by conceivably becoming entwined in the Israel/Lebanon conflict itself.
Steve Hargreaves reporting at CNNMoney.com quotes analyst Bruce Lanni of A.G. Edwards, saying: "If another event takes place, it's not at all unrealistic for oil to spike to $100," adding, "there's no fundamental reason in this current climate to see oil prices retreat below $70 in the next few months." Though Lanni believes many of these geopolitical tension are near a peak and at least some will inevitably ease off, he also notes we are just only now entering hurricane season.
I can't find a reason to be hopeful that this summer's storms will be less devastating than last summer's. Can you?
