Oil goes into new waters!

With the price of Oil hitting above 100$, it is that time of the year where we should all start looking for alternative means of transportation. With the Oil at new heights and with the middle east in an uneasy condition, one can only wonder how much further is this going to go to.
Of course, all eyes are on the OPEC but going by what they did the last time there was a hike in the Oil price, they would not do much this time either. The cost of the Gasoline has already shot up and naturally the prices of the essential commodities are also getting hiked. Our wallets are growing thin and now with this Oil hike, it is becoming micro, getting by on our salaries is really turning into a struggle of sorts these days.

Light Crude goes up by 1.90$ !

The common economics states that as the inventory falls, more pressure is exerted on the supply as the demand for that product is constant and ever increasing. What am I talking about? I am talking about the price of Oil and the price tango that it seems to go into each and every time the Energy department announces to the world that the Inventories have either fallen or risen.
The rise in inventory would make the oil prices to swing the other way about and this time around, the inventory stocks in the United states has fallen by at least 700,000 barrels last week, according to the energy dept. Naturally this has started exerting more pressure on the crude supplies and the factors that can effect the supply of Oil to the United states. Naturally as this news broke out, the immediate effect today is the rise in the price for Light Crude for January delivery which has risen by 1.90$ to 91.92$ a barrel on the NY Mercantile Exchange.

The Oil market is tight as it is with the OPEC not really into making more deliverables than the current content. And at times like this if there is any news of a skirmish in the middle east or another Palestine - Israel conflict, that will have a very resounding impact on the Oil prices or if Bush were to get more hawkish on Iran or the entire Middle east, that will most definitely make the Oil reach for fresh pastures beyond the 105$ range.

What one should remember is that inventories rise and inventories fall, but it is when the inventories fall that one should take into account the other factors like the geo political factors. It is at times like this that the price of the Light Crude as well as the entire Oil market is most vulnerable and with the way that the U.S economy is under right now, we most certainly do not need a 'bullish' Oil market as that would only extend undue influence on the already falling Dollar and may even push it into the Nether world!

oil,Iran,United states,middle east,Dollar,

The Gold buys are now!

With the Dollar as low as it is today, these are the days that one should purchase gold as the price for gold has really taken a tumble with the dollar being so low as it is today. But the low price of gold may not increase its sales as the U.S markets are still struggling with the credit crunch. Be that as it may, if you are seeking to purchase gold for festive reasons, then these are the days for purchasing them, or you can also reinvest in gold futures as they are looking a whole lot more attractive these days.

Oil touches 100$ - well almost!

With various issues raising their heads all over the world starting from the Musharraf emergency and worries about Pakistani nuclear weapons to Iran and the nuclear weapons program to Middle east violence all these seem to be contributing a lot these days to the Oil bull run. With no end to saber rattling in sight, the Oil is bound to remain high for the next few days anyway.
This is all the more true as the demands on Oil futures seem to keep going up and as usual OPEC is not going to do much about the 100$ dash. With no end to all this in sight,maybe it is time that we all took to the issue of 'alternative fuels' a bit more seriously!