Replies to post #59277 on Zeev's Turnips Talk Politics (ZTTP)

[Rick Faurot]

The Fed's oil bet

A drop in prices is what the central bank is betting on, but it's been a no show so far.
August 12, 2004: 8:37 AM EDT

NEW YORK (CNN/Money) - Could oil be taking a toll on Europe's growth now, too?

More and more evidence is piling up that growth has slowed in some of the biggest economies there, and rising oil prices could be part of the reason.

The oil question is a big one for the Federal Reserve. If they come crashing down at some point, because global supplies build up, terror fears abate, and inventories build, prices could come tumbling down. And that could bring gas prices down too -- a boon to consumers and a boost to the economy.

The Fed is betting on that.

But in the oil market no one has made money this year by betting on falling oil prices and as a result the traders and speculators have the bit in their teeth.

[Rick Faurot]

Oil Hits New High as Iraq Fighting Rages
Thu Aug 12, 2004 11:10 AM ET

LONDON (Reuters) - Oil prices hit fresh record highs on Thursday as U.S.-led forces sought to crush a rebellion in the holy Iraqi city of Najaf, a move which Shi'ite Iraqi militia have warned could trigger fresh attacks on oil infrastructure.
U.S. light crude rose 65 cents to $45.45 a barrel, the highest price in 21 years of trade on the New York Mercantile Exchange. London's Brent crude futures rose 51 cents to hit a new peak of $42.08.

Iraq's oil exports have run at half normal levels for the last four days as an uprising by an anti-U.S. cleric threatens infrastructure in southern production centers.

U.S. marines launched a major offensive in Najaf on Thursday to root out militiamen loyal to Shi'ite Muslim cleric Moqtada al-Sadr. Sadr's militia has threatened to blow up oil pipelines if U.S. forces storm Najaf.

[yayaa]

Outstanding, Holding MANY oil and related stocks:)))