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Oil hits record high for last two days running

lil dickie said: "Oil is running and its a running hard. It has hit a record high each of the last [url=http://money.cnn.com/2007/09/18/markets/oil_fed/?postversion=2007091815]two days[/url] [quote] U.S. crude for October delivery rose 94 cents to settle at $81.51 a barrel on the New York Mercantile Exchange, another record. Oil also hit another trading high of $81.90 a barrel earlier in the session. Although oil is at a record high in nominal terms, adjusted for inflation it remains below its peak of more than $90 a barrel in the early 1980s. Why $80 oil won't mean $3 gas The Federal Reserve cut the target on a key short-term interest rate by a half of a percentage point Tuesday to 4.75 percent. Oil traders took the move as a sign the cut could spur economic growth, increasing the demand for crude. Investors had already priced a quarter-point cut in the benchmark federal funds rate into the market, said Brad Samples, a commodities analyst at Summit Energy Services Inc. in Louisville, Ky. The half-point cut spurred even more buying. Moreover, many analysts see a weaker dollar as a natural side effect of lower rates, and that could promote buying of oil contracts by foreign investors. [/quote] So even though oil is up we are not supposed to expect a huge runup at the pump? Time will tell."