Oil Prices continue to rise reports Cayman Mama

2008-06-29 02:01:19 (GMT) (Caymanmama.com - Business News)

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As Federal Reserve made a decision to keep the rates of interest steady, the dollar was pressurized further this week. Tom Pawlicki, one of the analysts with the MF Global, Chicago, said that this decision of Fed signifies that the environment of high inflation and slow growth will be continuing.New York City, NY (CaymanMama.Com) — As reported by CNN oil prices have settled more than $140 per barrel in the record history on Friday. Sweet, light crude oil rose by 57 cents and settled to $140.21 per barrel on the NY Mercantile Exchange. By the afternoon, the contract of August reached a record high at $142.99 but got sold off by the day’s end as the traders anticipated a lighter volume in the following week. One of the oil analysts with the Cameron Hanover, Peter Beutel, said that as people are out from the market for 4th July, the traders are selling off for the session’s end for playing the market safely for the next week. The early rally of the oil market came as the stocks stumbled with Dow dropping over 150 points before it recovered slightly on the Friday afternoon.

John Kilduff, one of the energy analysts of MF Global, New York, said that people have lost confidence in the financial market and are moving towards markets of hard assets. During times of economical turmoil, people start looking at oil and similar commodities as safer haven. Many analysts have estimated that decline in the value of dollar is mainly due to the increase in oil prices that have doubled since last year. Weaker dollar may push the oil prices higher as the investors are buying oil for hedging against the inflation rate. As Federal Reserve made a decision to keep the rates of interest steady, the dollar was pressurized further this week. Tom Pawlicki, one of the analysts with the MF Global, Chicago, said that this decision of Fed signifies that the environment of high inflation and slow growth will be continuing.
In the mean time, the prices of diesel and retail gas have eased significantly, while the jump in oil prices on Friday prompted many analysts to estimate that it can head for a great milestone of $150 per barrel.



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