Crude oil passed the milestone fifty dollar per barrel mark in overnight trading. This is largely a response to turmoil in oil-rich countries such as Nigeria and
Iraq, as well as a decline in production in the Gulf of Mexico due to the hurricnes.
Terrorists and insurgents have been stepping up their atttacks in an attempt to distrupt energy markets and destabilize governments. The attacks have been most intense in Iraq, but also in Indonesia, Pakistan, India and Russia.
The news was anticipated but none the less devistated world wide markets expressed increasing concern. The United States saw the Dow drop below 10,000 once again on Tuesday. In other stock markets the indices in Asia and Europe took similar large hits.
OPEC's assurances to increase production have done little to calm investors and markets. Little change is expected from OPEC's actions. Alan Greenspan recently stated that the rising oil prices will restrain economic growth.
Futures markets, which allow investors to buy the right to purchase oil at a future date are further reflecting what investors believe is a continuing trend.
Just more that the Texas oilman will have to address in the coming weeks.
I don't know about the rest of you but I remember a few years back when the Dow was closing in on 12,000 and oil prices were under 20 dollars a barrel. In our local market the price has since skyrocketed from .899 cents/gallon to 1.999 cents/gallon.