Oct. 29, 2007

http://www.thestreet.com/s/oil-jumps-past-...E&cm_ite=NA

Crude futures hit an all-time high north of $93 a barrel Monday on a mixture of bullish trading momentum and reports that Mexico is slashing oil production because of severe weather.

The December light sweet crude contract jumped $1.67 to $93.53, its highest close ever, at the New York Mercantile Exchange. Reformulated gasoline was 5 cents higher at $2.33 a gallon. Heating oil was up 3 cents at $2.46 a gallon.

Near-term natural gas finished ahead by 5 cents at $7.27 per million British thermal units. The November contract at the Nymex expired at the end of the session.

According to Stephen Schork, principal at the Schork Group, crude is riding high on momentum that carried through from last week's record advance. "There's lots of bullish energy in the market right now," Schork said. "This market wants to go to $100 a barrel."

Welcome to Bush-World

Just in time for winter

One would think a good president, who knew the oil industry would mean lower prices, wouldn't one?

Not really.

First, this is not a good president.

Second, the oil industry has consolidated horizontally and vertically (under Clinton) to the point that there is no competition whatsoever.

And third, the Federal Reserve knows that the higher the cost of oil, and the exclusivity of the dollar as payment, guarantees global demand for those notes.

Things are exactly as I would have predicted they would be.