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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (23756)	10/22/2009 4:24:44 PM
From: DebtBomb	Respond to of 71412

Oil Spike Threatens Recovery: Is $80 the New $100? Posted Oct 22, 2009 12:22pm EDT by Heesun Wee in Investing, Products and Trends, Commodities, Recession Related: OIL, USO, OIH, USO, XLE, XOM, CVX Crude oil prices surged to a 12-month high above $80/barrel Wednesday as the U.S. dollar tumbled to a 14-month low, prompting investors to embrace hard assets such as oil and gold. (Oil prices slipped under $80/barrel Thursday as the dollar enjoyed a reprieve from its recent rout.) In addition to the dollar's demise, demand from recovering global economies is also spurring oil's rise. In China, for example, the economy grew 8.9 percent in the third quarter versus a year ago. We've come a long way since March, when oil fell to $30/barrel -- well off the highs of $147/barrel and $4/gallon retail gasoline in July 2008. So, how far will oil rise this time around? Bad winter for gasoline, heating fuel prices? Some analysts already forecast $100/barrel by early 2010. There's concern about higher winter heating bills for heating oil and natural gas. Gasoline is edging toward a yearly high, now averaging $2.62/gallon retail, according to AAA. But there is a key difference between the current oil run up vs. the spike in 2007 and into the first half of 2008 -- the economy. Back in the summer of 2008, consumers felt flush and oil prices needed to surpass the $100/barrel mark before consumers finally caved and consumed less energy. (Remember conservation? The big push to alternative energy?) This time around though, with American consumers pinched and unemployment approaching 10%, $80/barrel oil may be the new $100 -- with consumers altering their energy habits well before we hit $4/gallon at the pump. finance.yahoo.com