Peak Oil Review – May 25

1. Production and Prices

2. Washington

3. Briefs

1. Production and Prices

Oil prices had a bullish week, increasing steadily from $57 a barrel, at one point getting above $62, and then closing at $61.67. Once again the fundamentals of supply and demand had less to do with the price increase than financial considerations. On Monday oil surged in sympathy with a 2.9 percent jump in the Dow Jones. However, by mid-week the picture changed with the release of a Federal Reserve statement saying there are still troubles ahead. This dampened the enthusiasm for equities, but a plunge in the dollar soon increased demand for oil contracts as an inflation hedge. Problems auctioning off massive amounts of US treasury securities and concerns that higher interest rates may be ahead continue to support prices. […]

2. Washington

The nation