Crude oil prices rose to record prices as the US dollar dropped to an all-time low against the euro, prompting some traders to invest in commodities as a hedge against inflation.
CRUDE OIL A sharp decline in the US dollar following a weak report on US economic growth, has taken oil prices to a new high. At the end of the week of March 3, 2008, crude oil for April delivery settled at US$101.84 a barrel on the New York Mercantile Exchange. The fresh record prices coincide with the flow of investor money into commodities. US dollar dropped to an all-time low against the euro, prompting some traders to invest in commodities as a hedge against inflation. The surge in crude oil futures has little to do with market fundamentals now. A report by the US Commerce Department states that the US economy expanded at a sluggish 0.6% annual pace in Q4, in a report that left its prior estimate of output growth unrevised. Additionally, concern that OPEC could reduce output has been one of the factors driving prices above 100 dollars this week.
Wednesday, March 05, 2008
Price trends of oil, polymer feedstock and commodity polymers in Asia for t...
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