Crude oil marches north of $140

Tag : Crude Oil

Oil continues to climb despite rising inventories and signs ofsoftening demand for gasoline in the world's largest consumingmarket south of the border.
"That's the part of the argument that's been thrown out thewindow," King added. "The U.S. demand slowdown has becomeirrelevant. That means it's (the oil price) being determinedelsewhere, in places like India and China."
Oil's gain sent the resource-heavy Toronto Stock Exchange highereven as stock markets around the world tumbled to three-month lows.
The TSX main board gained 63 points to close at 14355.21 while theDow Jones industrials shed more than 100 points to close at11346.51.
On Thursday, CIBC energy guru Jeff Rubin raised his 2009 oil priceforecast to $150 and $200 in 2010 even while other analysts seemedperplexed as to which way to go.
In an e-mail obtained by the Herald, Boston-based Societe Generaleanalyst Ian Lyons begged for clarification after the globalresearch house published two conflicting price forecasts -- one at$60 and one $150 -- in the same week.
"Just not sure which 'goal post' to pick: Trying not to confuseclients, burn our credibility . . . please help," he wrote.
Frederic Lasserre, SG's global head of commodities research, saidin a note he expects regulators in the U.S. and Europe to crackdown on speculators that have been blamed for driving up prices.
"We expect that the authorities, first in the U.S. and then inEurope, will take measures designed to restrict the ability ofinvestors to enter commodity markets, probably by the end of thisyear, if not earlier," he wrote, while discounting the usefulnessof such a drastic step. Through history, speculation has often beenblamed for commodity price increases that have "almost always" hada physical origin, he said.
"The impact on prices will depend on the severity of thesemeasures. At best, the authorities can hope for a correction inprices.
"The bullish trend is not the consequence of speculation, butinstead reflects the fact that commodities are the asset class thatnow finds itself at the junction of the three major challenges forthe 21st century: population growth, globalization and climatechange."
The confusion comes as an association of U.S. mayors earlier thisweek adopted a resolution calling for the reduction of "dirty"fuels from Alberta's oilsands, which are seen as a majorcontributor to greenhouse gas emissions linked to global warming.