WTF (Oil)

From: Le Figaro
06.06.2008
by A. Panizzo

THE PRICE OF OIL TOPS 139 DOLLARS

The price for a barrel of crude oil went over 138 dollars for the first time in New York Friday, with a jump of more than 10 dollars.

Prices for the Black Gold, in less than two days, have broken all previous records and ended the appreciable lowering experienced at the beginning of last week.

In the context of a remarkable weakening of the dollar, a barrel of «light sweet crude», New York side, finished the week up 10,75 dollars at 138,54, after having gone over momentarily the 139 dollar mark (139,12).

In London, North Sea Brent for the same deadline bested its record, to 138,12 dollars per barrel. The previous record for the barrel traded in New York was 135,09 and that for the Brent on the London market was 135,14. Since Thursday, markets are under the influence of a lowering of the dollar with respect to the Euro in the wake of a declaration by the president of the European Central Bank, which opened the way to stronger monetary policy in Europe.

The fall of the dollar, which greatly influences oil prices, worsened again on Friday after bad employment figures for America, which show a net increase in unemployment for May. In effect, unemployment was at its highest in almost four years in May in the United States, at 5,5%, compared to the 5,1 expected by analysts. Nonetheless, the American Economy only lost 49,000 jobs rather than the expected 60 000 layoffs. And it is for the sixth month in a row that the United States have lost jobs.

As well, according to the national oil agency of Libya, still higher prices are to come. It is estimated by that institution that oil should soon attain a record price of 140 dollars a barrel. Business bankers Morgan Stanley see it even higher. Their estimate is that the barrel of crude could reach 150 dollars by July 4.