« Weekend Update: An Excellent Feature | Main | For the Bushies, Loyalty Runs One Way Only... »

August 08, 2005

Supply Shocks

Oil prices rise further:

WSJ.com - Crude Futures Rise to Near $64 On Geopolitical, Supply Worries: Crude futures rose to a new high Monday, nearing $64 a barrel, as the U.S. government announced the closure of its embassy and consulates in Saudi Arabia due to security threats and on continued concerns that earlier shutdowns of U.S. oil refineries would reduce supply. Light, sweet crude for September delivery on the New York Mercantile Exchange rose as high as $63.95 a barrel, up $1.64 from its record close of $62.31 a barrel on Friday. Oil traders suggested $65 oil may be a foregone conclusion, as crude futures contracts for late 2005 and early 2006 shot past $65 and $66 a barrel Monday. "I guess we're going to $65 a barrel -- you can pick out almost any variable right now and it's all pointing to the upside," said Michael Guido, director of commodity strategy in New York for French bank Societe Generale. "Holding short in this market has been a losing proposition."

Posted by DeLong at August 8, 2005 08:52 PM