Oil strikes record near $94

Oil strikes record near $94

Matthew Robinson
October 29, 2007

Oil jumped to a record high near $94 a barrel on Monday as stormy weather disrupted supplies from giant exporter Mexico and the dollar wallowed near record lows.

Mexican state oil company Pemex has shut a fifth of the nation’s crude production and halted the bulk of exports as storms kept ships bottled at ports across the country, a top U.S. supplier.

U.S. crude settled up $1.67 at $93.53 a barrel after striking a record $93.80 earlier. London Brent settled $1.63 higher at $90.32 a barrel.

Oil prices have soared by more than a third since mid-August as a stand-off between Turkey and Kurdish rebels, dollar weakness, easing interest rates and winter supply fears have lured a fresh wave of investment capital.

“Every new bullish factor pushes U.S. crude irrationally closer to $100 barrel,” said SGCIB, adding: “Prices will fall if the FOMC does nothing.”

The U.S. Federal Reserve’s Federal Open Market Committee meets on October 30-31, and Wall Street is betting on another rate cut as the U.S. housing downturn deepens.

Expectations of a cut have helped push the dollar to record lows against a basket of currencies and boosted the price of dollar-denominated commodities.

Full article here.


Canadian Dollar Hits 47-Year High

October 29, 2007

The Canadian dollar reached on Monday a 47-year high versus the US greenback, gaining on the US currency’s recent weakness, as well as soaring demand for oil and other natural resources.

At 1500 GMT, the American dollar was worth only 95.47 Canadian dollars, while the loonie, a sobriquet given to the Canadian dollar, was being traded for 1.0474 US dollars.

According to the Bank of Canada, the loonie had last seen such heights in March 1960.

Analysts noted that all major currencies were increasing in value against the US dollar in anticipation of an interest rate cut by the US Federal Reserve on Wednesday.

Most observers expect the Fed to cut its key lending rate by 25 percentage points, bringing it in line with Canada’s rate of 4.50 percent.

As well, demand for oil, gold and other natural resources, of which Canada is a major exporter, has given the Canadian dollar a big boost of late.

Since the beginning of this year, the Canadian dollar has increased 20 percent, and jumped 69 percent since 2002, when it was trading at a historic low of 61.70 US cents.

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