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Oil Prices Closed Above $100 on Speculation

By Benny Nardino | February 20, 2008

Oil closed yesterday at new record height of $100.10 - a level that had never been seen before. Goldman Sachs have speculated about this for more than two years. In a BBC report then, they said that “.. the oil market… early stages of a ’super spike’, which could push prices as high as $105 a barrel…” However, the oil market finally succumb to these sort of speculations from oil futures trader. Funny enough, this rise was market nothing to do with the numbers but hunch and hear-say. Full BBC story on ”Oil prices surge to new records”

Crude oil prices hit record levels on Friday, with leading investment bank Goldman Sachs warning the cost of a barrel could eventually top $100. Goldman Sachs said that the oil market may be in the early stages of a “super spike”, which could push prices as high as $105 a barrel.

It said strong global demand, allied to potential instability in oil producing countries, could inflate prices.

US light crude rose as much as $2.40 to $57.70 a barrel in New York.

By the close, the price had slipped back to $57.27 a barrel.

The previous high was $57.60, set on 17 March. Full Story…

For nations like Japan whose currency is highly influenced by oil prices it generate volatility. Nevertheless, these reports should generate a lot of play for YEN related crosses, USD/JPY, EUR/JPY, GBP/JPY etc.. today. I will be setting myself up for that.

Have a great day and a great trade.

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