Oil sets new record on expected rate cut

[Lone_Star_Dem]

Source: AP - CNNMoney

Crude moves over $80 a barrel as traders expect the Federal Reserve to cut interest rates, spur economic growth.
September 17 2007: 3:19 PM EDT

NEW YORK (AP) -- Oil prices set another record and other energy futures rose Monday on expectations that the Federal Reserve will cut the benchmark federal funds rate, a move the market expects will support the economy and ensure its thirst for oil and gasoline.

"If the economy's going to be okay, then oil prices are probably undervalued," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Light, sweet crude for October delivery rose $1.47 to settle at $80.57 a barrel on the New York Mercantile Exchange, another record closing high. Oil also set a new trading high earlier in the session of $80.70 a barrel.

Though they are at record Nymex trading highs, oil prices are still well below inflation-adjusted highs of $96 to $101 a barrel achieved in the early 1980s.

Oil futures rose as high as $80.50 on Monday, a new trading record. Oil prices set several new records over $80 a barrel last week for a number of reasons, including perceptions that problems in the subprime mortgage industry would have a minor effect on the economy.

Read more: http://money.cnn.com/2007/09/17/markets/bc.apfn.oilprices.ap/index.htm?postversion=2007091715

---

The consumer cannot win for losing, or so it would appear.