Thursday, June 26, 2008

Oil Prices Hit New Record; Some Predict $7-Per-Gallon Gas

This is a full-fledged crisis. We need to wake up. If something isn't done soon we could have either a depression or hyper-inflation on our hands. The markets have to be stabilized. There is panic going on which is causing skyrocketing oil prices. All this talk about offshore drilling is irrelevant and stupid. We don't a new energy policy. We need leadership. That idiot in the White House is obviously not providing it. He is the problem in the first place. Skyrocketing oil prices began with the Iraq War. Mr.Obama or McCain need to start providing leadership here. If they can do it.

Oil prices surged into record territory today, boosted by a report predicting that gas prices will hit $7 a gallon in the United States within two years.

Further compounding the rise in prices were statements by OPEC's president that a barrel of oil could soon be trading for more than $150 and reports that Libya is weighing cutting its oil production.

Investors also grew wary that the Federal Reserve will not raise interest rates until late this year, leaving little hope that the dollar with strengthen. Oil is traded in dollars and part of the run-up in oil prices has been attributed to the weak dollar.

Oil closed at $139.64 a barrel, a spike of more than $5 over yesterday's close. The intra-day trading high was $140.00.

As oil prices soared, stocks tumbled. The Dow Jones industrial average lost some 300 points by the late afternoon after fresh signs of trouble emerged in the financial, automotive and high-tech industries.

No comments: