Oil futures mark first-ever close above $80 a barrel

[Roland99]

Source: MarketWatch

SAN FRANCISCO (MarketWatch) -- Crude-oil futures marked their first-ever benchmark-contract close above $80 a barrel Thursday as a result of concerns over U.S. supplies that have been falling for weeks, but natural-gas prices dropped more than 6% as a storm threat to energy production in the Gulf of Mexico fizzled.

Crude for October delivery tacked on 18 cents to finish at $80.09 a barrel on the New York Mercantile Exchange. It touched an intraday high of $80.15 during the regular session and $80.20 during the electronic trading session -- both of which are all-time intraday highs for a front-month contract.

...

"Being at $80, we're in uncharted territory," said Phil Flynn, analyst at Alaron Trading. Flynn read macroeconomic considerations into the move higher in crude.

"I think that means that we're seeing an appetite for risk coming back into the market," he said. "It's a sign that some of the commodity funds are willing to come back into the market, which is a good thing for the economy. The market is betting on a strong recovery."

Read more: http://www.marketwatch.com/news/story/crude-marks-first-ever-close-above/story.aspx?guid=%7B345BD322%2DD12B%2D478C%2DB0D7%2DFBFE17BC8866%7D

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"Can you take me high-er...."

[zippy890]

1. but didn't the saudis- I mean OPEC- just say they are

increasing oil production?

I don't get it.

[Celebration]

2. a couple of factors

1.Some people think we are already at peak production and pronouncements at OPEC therefore don't mean much.

2.Humberto.

[hadrons]

4. OPEC/Saudis have promised that before the last few years ....

never delivered

[hogwyld]

3. My 2 cents worth

Are that global production is at it's peak, and cannot meet current demand leading to rising prices. That, coupled with the loss of value to the dollar, is another reason. Once Mexico goes dry in 5 - 7 years, and the decline in the middle east production capacity, and we are in for Mr. Toads wild ride!

[harun]

5. My 2 cents would be

the dollar losing ground. If our dollars are worth less, the world requires us to pay more of them for the oil.

[olddad56]

6. our currency is so inflated that a dollar is only worth 1/80th of a barrel of oil.