Crude Oil Hits $100/Barrel
Jan 2nd, 2008 by Shaun Carter
Earlier in 2007 I had predicted that crude oil would hit $100/barrel by the end of 2007 and I wasn’t far off. January 2nd marked the first time crude oil landed on $100, but it quickly subsided before the market close. Even though the price fell at the end of the day, the settlement price still wound up being a closing record of $99.62.
I also think this is only the beginning of the spike in crude oil prices and that we will continue to set records during 2008 amid the tensions in the middle east and increasing consumption of oil from developing nations China and India. I see a price in the $120-150 range for most of 2008. This will no doubt cause more hardship for consumers as the US Federal Reserve is trying to control inflation and lower interest rates to spur economic growth. Gasoline prices will also continue to rise through 2008.
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