Another day another 200 points plunge as jaw-dropping investors watched the oil prices hit the roof of $135 ($135.04 in after-hours electronic trading) a barrel for the first time Wednesday thanks largely to the report from the Energy Department’s Energy Information Administration which said crude inventories fell by more than 5 million barrels last week. Adding salt to the injury was the minutes from last month’s Fed meeting revealed that while policymakers expected sharply lower economic growth and higher unemployment later this year, inflationary risks are likely to keep the central bank from cutting rates again.

This is cool. The oil prices have breached my prediction of $130 a barrel. I dare not say anything more as I could be spanked if I were to say it will goes up to $150, easily. Anyway, U.S. senators are making the hoo-haa out of it talking about corporate conscience while the oil companies said it was all about supply and demand. Who could blame these corporations when their profits suddenly ballooned to unbelievable figures? Since when do oil companies care about the public, not that it could do anything in the first place? It’s all about money, money and more money.

Nevertheless, it appeared the House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices. This is getting hilarious although White House is expected to veto against it but the 324-84 vote is huge enough to override a presidential veto. While it’s true that Americans are now at the mercy of OPEC (hey Mahathir, you should rejoice now) it does not make any sense to subject OPEC oil producers including Saudi Arabia, Iran and Venezuela to the same antitrust laws that U.S. companies must follow. But I guess to pay $3.79 a gallon gasoline could easily make anyone goes mad, including senators.

Other Articles That May Interest You …

• Soros, Buffett and Trichet said It Ain’t Over Yet
• Oil prices continue to defy gravity, somebody said US$200?
• Oil prices going for the $130 jackpot, are you ready?

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May 22nd, 2008 by financetwitter

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