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FT: Crude breaches $119 in frantic trading


SnyderShrugged

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Uh Oh....:(

http://www.ft.com/cms/s/0/3f985d7c-3d89-11e0-ae2a-00144feabdc0.html#axzz1EstCdFsF

Thursday 12.40 GMT. Oil’s grip on global investors gets ever tighter, crushing risk appetite with another sharp move higher.

Brent crude breached $119 a barrel during a period of frantic trading around 0745 GMT as industrial needs were hedged and traders exploited momentum.

Worries that reduced supplies from Libya may be replicated in other regional producers facing potential political turmoil has seen the world’s oil benchmark jump nearly $17 this week. Brent is now trading at $114.95, up 3.3 per cent, as fear delivers extreme volatility to dealing desks. The scramble to secure output is shown by a steepening “backwardation” futures curve, where contracts for immediate delivery command higher prices than more distant ones.

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I am a one car family. The lady take our Honda Fit to work everyday (20 minute drive) and I take the bus downtown. Bus fares have gone up recently (120% increase in the last 1 1/2 years) and I was thinking of getting a 2nd car for flexibility . . . . but news like this makes me think twice. Who knows what gas will get us to this summer.

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I am a one car family. The lady take our Honda Fit to work everyday (20 minute drive) and I take the bus downtown. Bus fares have gone up recently (120% increase in the last 1 1/2 years) and I was thinking of getting a 2nd car for flexibility . . . . but news like this makes me think twice. Who knows what gas will get us to this summer.

I wish public transportation was an option. I'd jettison my wife's 2002 Malibu and make the Yaris her daily driver. 38MPG and I can push it to 42 on the highway.

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Some guy on Bloomberg Radio said a couple days ago that oil could hit $200/barrel if unrest in Algeria grows and starts to show up in Saudi Arabia.

won't happen in saudia arabia. Unless I'v missed something over the years, their citizens are doing just fine. On top of that, Mecca and Medina are there. No way the muslim world starts rioting in such a "holy" and "sacred" land.

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