Oil

We've seen a new milestone, light sweet crude for July delivery, New York's main oil futures contract has jumped on Friday (6/6/08) by $US10.75 a barrel which is the biggest one-day jump ever - to close at a record price at $US138.54 per barrel. The reason for the record-setting surge was a result of fears of a new Middle East conflict occurring from a comment made by a top Israeli official about Iran. While the closing price for the crude oil was at $US138.54, the high of the day was set at the all time high of $US139.12.

The week has been an eye opener for market watchers, traders and investors alike. We’re at a crossroads. (Aren’t we always at a crossroad?) Australia is going to elections at the end of November on Saturday 24th. US elections are coming too but that’s next year. Billionaire investor George Soros is warning of an impending market correction. The US dollar is continuing to decline all the while oil and gold is seeing all time highs. There you have it, the five topics that have caught my eye in the past week: George Soros, elections, the US dollar, oil and gold.

Be more proactive on petrol price hikes. As traders, you should be asking yourselves where the money is being made constantly, and thinking if you can get a piece of the action. You can trade Oil on the futures exchange. Sure, if you don't have a futures broker or no experience in futures you can always learn. Anyway, petrol prices are set to rise above $1.50 a litre in Australia.

The word on the street from Barclays Capital is that the pot oil price is set to rise to US$70 per barrel. Thats the message oil specialists at Barclays Capital are reading in the current resilience of the far forward oil futures (within the framework of the recent sell-down pressure). The simple message is this: "if you could only trade once this year – and that time had to be now – then crude is a clear buy". However, there may be still some more downside to come.