[Schadenfreude]

$109.13 Jeezuz!

This market looks like its rushing to catch up to some new bullish fundamental.

...like traders just got direct word from the Fed that its going to destroy the dollar.

[simontay78]

$this->bbcode_second_pass_quote('Schadenfreude', '$')109.13 Jeezuz!

This market looks like its rushing to catch up to some new bullish fundamental.

...like traders just got direct word from the Fed that its going to destroy the dollar.

[lowem]

From NYMEX CSO, $109.20 is the new record.

Looks like we're getting into the $105-110 trading range really quickly.

[Bas]

$this->bbcode_second_pass_quote('lowem', 'F')rom NYMEX CSO, $109.20 is the new record.

Looks like we're getting into the $105-110 trading range really quickly.

[kilik]

I think we'll see some profit taking around $115. Maybe down to $105. Then up again.

I don't think we'll ever see oil bellow $100.

[LGW]

$108.81 now. Uhhhh.... this goes faster than I expected.

[Concerned]

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[Olle]

It is a good crude, but very expensive

http://www.upstreamonline.com/market_da ... kets_crude

[mkwin]

NYMEX WTI now over 109

[KevO]

$this->bbcode_second_pass_quote('', '
')Oil sets fresh record above $109
The cost of petrol is soaring around the world
The price of crude oil has set a fresh record at $109.20, its fifth day in a row of historic highs.

[Bas]

make that $109.54, uhm, I mean $109.69

[Schadenfreude]

What is the news that traders are responding to? Is it just interest rate cuts and some minor supply glitches?

[chris-h]

109.70

because i am lazy what is the price in yergins ?

[Zardoz]

Every commodity is up. Gold is at $984.50.

Oil Hits Record Above $109 on US Dollar Weakness
$this->bbcode_second_pass_quote('', 'O')il rose to a record high for the fifth day in a row on Tuesday, boosted by investor flows into oil and other commodities partly to hedge against inflation and the weak dollar.

"Concerns about inflation are very strong. Hedge funds are selling stocks and buying commodities, especially oil and gold, because the U.S. dollar is weakening," said Takeda Makoto, an analyst at Bansei Securities.

The U.S. dollar steadied on Tuesday, but has been at record lows in anticipation of more interest cuts by the Federal Reserve to boost the flagging economy in the United States, the world's top energy consumer.

Prices had dipped slightly after the International Energy Agency said world oil demand would be less than expected this year because of slower economic growth in industrialized countries and record prices.

"There's quite a big downward revision to demand in industrialized countries," said Lawrence Eagles, head of the oil industry and markets division at the IEA, which advises 27 industrialized countries.

Oil has set a string of record highs as a bullish long-term supply outlook for oil and other commodities has continued to suck in investment flows looking for alternatives to equities and bonds that are overshadowed by the credit market crises and fears of a U.S. slowdown.

"Looking at the big picture, we believe that the recent price surges in the commodity sector have been for the most part triggered by large capital inflows from institutional investors, hedge funds above all," said fund manager Tiberius Asset Management in a research note.

Goldman Sachs warned oil was at risk from substantial fund liquidation due to cyclical fundamental weaknesses in the next few months, but the investment bank remains constructive on energy for the long-term.

"We believe that the combination of low economic growth in the United States and high oil price inflation will have its strongest impact on demand in the first half of the year," the bank said in a research note.

The latest update on fuel supplies in the United States, due on Wednesday, is forecast to show a 1.9 million barrel rise in crude oil inventories last week, according to a preliminary Reuters poll.

Analysts also expected a 1.9 million barrel decline in distillate stocks. Gasoline stocks were expected to have fallen 500,000 barrels, which would be the first dip in 18 weeks.

[JFT]

$this->bbcode_second_pass_quote('bloomberg', 'M')arch 11 (Bloomberg) -- Oil futures advanced to a record for a fifth day, rising above $109 a barrel in New York, as the sinking dollar drew investors to commodities.

The euro gained to $1.5489 against the dollar, the highest since the single currency's introduction in 1999, after European Central Bank council member Axel Weber said he doesn't see any leeway to lower borrowing costs. Oil has advanced 13 percent this year as the tumbling dollar makes assets priced in the U.S. currency an appealing currency hedge.

``The weaker dollar has attracted a lot of investors into oil,'' said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. ``At the same time, emerging market demand is strong.''

Crude oil for April delivery rose as much as $1.82, or 1.7 percent, to $109.72 in electronic trading on the New York Mercantile Exchange. The contract traded at $109.51 a barrel at 12:23 p.m. London time.

Brent crude for April settlement also rose to a fifth consecutive high, gaining as much as $1.66, or 1.6 percent, to $105.82 a barrel on London's ICE Futures Europe exchange.

Hedge-fund managers and other large speculators raised their bets that prices will rise last week. Bets on rising prices outnumbered so-called short positions by 99,539 contracts on the New York Mercantile Exchange, according to Commodity Futures Trading Commission data on March 7. That's the highest level since November.

Hedge Funds

Investments in commodity hedge funds rose to $104 billion at the end of 2007 from $73 billion in the first seven months of last year, according to data from Singapore-based research company Eurekahedge. Oil, industrial metals and wheat prices have rallied this year, while the S&P 500 and Dow Jones Industrial Average have dropped.

Oil rallied even as the International Energy Agency cut its forecast for 2008 global oil demand for a second month because high prices and weaker economic growth have ``weighed down'' demand growth in industrialized nations.

The agency, an adviser to 27 industrialized nations, reduced its forecast for 2008 demand by 80,000 barrels a day to 87.54 million barrels a day, leaving annual demand growth at 2 percent, the IEA said today in a monthly report.

New York crude's relative strength index, a measure of how rapidly prices have advanced or dropped during a specified period, rose above 70 for the first time since October. Readings above 70 indicate a price may be poised to fall, and readings below 30 indicate it may be poised to rise.

The 14-day relative strength index was at 71.18 as of 11:26 a.m. London time.

``As prices break highs on a daily basis with increasing volumes, these markets look overbought, but these are not normal trading conditions,'' said Rob Laughlin, senior broker at MF Global Ltd. in London. ``It will end in tears, but not yet.''

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: March 11, 2008 08:26 EDT

[Gazzatrone]

Well numerically $110.

But with jumps of $1.42 I think oil prices just jumped on a Saturn 5 rocket that's just taken off.

[dorlomin]

Jesus 4 months ago $100 oil was sounding pessimistic.

This inspite of China exporting less.... its oil imports grew....

If this is all just speculation and the spot price falls back to $80-$90 in a few weeks then someone is going for one hell of a bath.

[Gazzatrone]

$this->bbcode_second_pass_quote('bonehead', 'C')an't wait for my stimulus check,i'll be using it to buy $4.00 a gallon gas.Boy, is this country in trouble.

[Zardoz]

Some thread-merging is in order...

[Pholostan]

Correct me if I'm wrong, but didn't Yergin predict $60 oil this year? Almost at a double Yergin then.

Anyway, this little fluttering is of small importance. Wake me up when oil hits $400.