Yikes! NYMEX crude oil is now $36.20 a barrel

[jpak]

http://www.bloomberg.com/

It's been skyrocketing for the last few days.

But not a peep from the media.

$2 a gallon gasoline before March????

[bahrbearian]

1. All part of Chimpy's Recovery

[htuttle]

2. It's going to keep moving inversely to the dollar

Otherwise, OPEC loses a lot of money.

On the other hand, if you live in a euro based economy, you are paying less than you have for years (though that might not be reflected at the pump...).

[denverbill]

3. That's surely part of it.

Another part is this.

http://story.news.yahoo.com/news?tmpl=story&cid=568&e=9&u=/nm/20040120/bs_nm/energy_weather_cold_dc

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IMHO, it was the energy crisis in California in 2000-1 that caused a significant part of the recession. If you pay twice as much for something you have to buy every month, you have that many fewer dollars to spend on anything else.

[salinen]

5. Commodities markets are so corrupt

that there is no supply and demand theory at work. People celebrated killing iraqis by buying Hummers, HaHa.

[slothrop]

4. crude prices and the value of the dollar

Check out the value of the dollar which is the petro currency, if you were selling oil and the dollar worth was 20-30% than it was a few months ago, would you not raise the price of your crude? The oil selling countries are not buying everything from the US, so they raise the price of their oil to compensate for the fact that the dollar is headed for the toilet.

[yellowcanine]

7. Yeah - weak dollar side effect, imo

Investors,whether overseas or domestic, aren't blinded by patriotism so they don't listen to the Bush propaganda about the "strength" of the U.S. economy. They just see the value of oil rising relative to the value of the dollar. If this goes on long enough it could trigger inflation in the U.S. Thanks George.

[RedEarth]

6. The neocons said the price of oil would fall once the war was over...

What happpened? I guess this is a subject they don't want to talk about now.

[Skittles]

8. they thought Iraq would be a cakewalk and we'd be swimming in oil

f***ing idiots