Oil Hits New Record

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Oil set a new record at $114.54 per barrel. The main reason cited is that speculators are pouring money into commodities, due to the continued decline of the dollar. As the Euro continues to climb against the dollar, money keeps pouring into oil.

According to Olivier Jakob, the trend is likely to continue, regardless of fundamental reasons. “Monday and Tuesday crude oil managed to move ahead without the help of the dollar,” he said. “But once we broke above 1.59 euros per dollar and as we move toward 1.60, there’s going to be more buying coming into oil.”

Investors have been putting more money into commodities, and so far have found an above average return, especially as opposed to stock market investing. However, there are warning signs that the price increase in Oil might be slowing. Consumer demand appears to be sluggish, despite the U.S. heading into the driving season.

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