Tuesday, April 15, 2008
Oil price increases to new record
The price of oil has hit a new record on the back of supply worries after bad weather hit Mexican oil exports.
US light, sweet crude oil rose 72 cents to $112.48 a barrel, above the previous record of $112.21. Brent crude rose 41 cents to $110.25 a barrel in London.
Bad weather led Mexico - a key supplier to the US - to close ports that deal with 80% of its oil exports.
Oil price hits record high in Asian trade
NVDL: At some stage people have got to realise that when 'bad weather' starts to impact on how much a loaf of bread costs (and everything else obviously), but specifically the oil price, we are really in trouble. And now the last thing we can ask to play ball is the weather, as the Amazon is being burned faster than ever to grow Soy crops (very lucrative now for biofuels), and coal is becoming the alternative of choice for power generation, and incidentally, synthesising oil. Major ice shelves are crumbling in the Antarctic as we speak, whilst a few ice crystals survive on Kili. We are going to see an acceleration now in things going from bad to worse (across the spectrum - inflation, recession, failing economies, crime, food and fuel shortages). For additional insights on this topic, read James Kunstler's epic (though understated) book: The Long Emergency.