$80 oil price no fluke to analysts

Supply, demand still rule, they say, even as other factors move price

This week’s record push past $80 for a barrel of oil had plenty of variables, including the Federal Reserve’s interest rate cut, the weakened dollar and a pesky tropical system in the Gulf of Mexico.

But analysts say the basics still rule: Demand is strong, supply is tight, and access to resources is restricted, leaving little room for disruption.
Crude settled at $81.62 a barrel Friday on the New York Mercantile Exchange, down from Thursday’s record close of $83.32. Brent crude hit a record Friday, closing at $79.30 a barrel, up 21 cents, on the London ICE Futures exchange.

The question for analysts is how high oil can go