CRUDE OIL Oil prices have spiked past US$111 per barrel to an all time high. Light, sweet crude for April delivery rose to a record US$111.42 a barrel in New York during the week of March 17, 2008. This hike continues to be prompted by increasing investments in commodities as the US dollar continues to slip and the stock markets continue plunging. Investors have turned away from the dollar after a surprise move by the US Federal Reserve on Sunday to provide cash to financially squeezed Wall Street investment houses - a move that has pushed the battered US currency lower against the yen. Market players believe that this move will further soften the dollar- leading investors to buy oil and commodities to hedge against the falling dollar and inflation. Interest rate cuts in the US have further weakened the dollar. Crude oil is up 90% from a year ago levels.
Thursday, March 20, 2008
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