OIL $91, GOLD NEARLY $780
October 26th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Congratulations to all Cryptogon BullionVault clients who have stood so hard on the bid lately. I hope you are diversified and managing your risk well.
Gentle reminder, after looking at the weekly gold chart, stochastics and RSI: Nobody ever went broke by taking profit.
Best of luck to all of you.
Via: Bloomberg:
Crude oil rose to a record above $91 a barrel in New York on an unexpected drop in U.S. stockpiles and concern that supply from the Middle East may be disrupted.
Inventories last week fell 5.29 million barrels to the lowest since January, the U.S. Energy Department said. New U.S. sanctions against Iran, warnings of a Turkish assault on Kurdish militants in Iraq and a falling dollar helped push prices higher. Brent futures in London reached a record.
“The market has been particularly surprised by that 5 million-barrel drop in crude, that was really one out of left- field,” said Mark Pervan, a commodity strategist at Australia & New Zealand Banking Group Ltd. in Melbourne. “As much as we’re seeing concern about Middle East stability, it’s a dollar-driven story as well. It’s a bit of a perfect storm.”
Crude oil for December delivery rose as much as 64 cents, or 0.7 percent, to $91.10 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It traded at $91.02 at 12:20 p.m. Singapore time. Prices are 51 percent higher than a year ago.
Yesterday the contract jumped $3.36, or 3.9 percent, to $90.46 a barrel, a record close. It was the biggest one-day gain since April 23.
Record oil prices are raising concerns that inflation will rise and lower growth in the global economy. The Group of Seven industrial nations said in a statement last week that high crude levels will moderate growth going forward.
