Thursday, October 18, 2007

Oil at All Time High (Nominal Dollars)




Oil prices finished at an all-time high above $89 a barrel Thursday, while the cost of a gallon of gasoline jerked higher.

Light, sweet crude for the November contract jumped $2.07 to settle at $89.47 a barrel on the New York Mercantile Exchange, shattering the previous record of $87.61 a barrel reached two days earlier....

Wednesday's news that Turkey had authorized military action in Northern Iraq also helped prop up crude prices.

Conflict along the Turkey-Iraq border could disrupt oil supplies coming out of the region and drive crude prices even higher.

"It's just a round robin of geopolitical and macroeconomic issues," said Kilduff.

Despite the recent gains in crude prices, when adjusted for inflation, oil is still slightly cheaper than the $95 a barrel or so it would have been in the early 1980s.

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