Inching Closer To $100 Oil
It's getting to be an everyday thing: The futures markets hit a new high-oil mark as crude surges toward an apparently inevitable $100 per barrel.
On Nov. 7, oil touched an intraday high north of $98 before slipping back on a report that U.S. inventories hadn't shrunk as much as expected. On the same day, the dollar sank 361 points. Meanwhile, the dollar, in an inverse spiral, reached new lows against the euro.
The $100-a-barrel question is whether the economy will slip on oil prices and fall on its face. The answer is that it probably won't, because America isn't as oil-dependent as it used to be. But oil plus the credit crunch could deal a nasty blow.
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On Nov. 7, oil touched an intraday high north of $98 before slipping back on a report that U.S. inventories hadn't shrunk as much as expected. On the same day, the dollar sank 361 points. Meanwhile, the dollar, in an inverse spiral, reached new lows against the euro.
The $100-a-barrel question is whether the economy will slip on oil prices and fall on its face. The answer is that it probably won't, because America isn't as oil-dependent as it used to be. But oil plus the credit crunch could deal a nasty blow.
* * * * *
posted by Bob Moser at
6:26 PM
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