Oil Races Higher, Rate Cut Seen as Possible Spur to Economy
Oct 30th, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Wednesday, oil roared higher, with crude for December delivery closing at $67.50/barrel, up $4.77. November reformulated gasoline rose 7.75 cents, to $1.533/gallon.
“The move in oil prices reflect an overly optimist[ic] view that rate cuts will spur increased economic demand for oil,” wrote Mark T. Williams, of Boston University, a former Fed examiner. “Unfortunately, if the looming global recession happens, further rate cuts will be needed to prop up the economy and oil.”
In its weekly inventory report, the Energy Information Administration said that crude stocks were up a half-million barrels for the week ending October 24. Gasoline supplies surprised by unexpected falling for the first time in five weeks, down 1.5 million barrels.
Rounding out the data, distillates were up 2.3 million barrels, and refineries were operating at 85.3% of capacity, vs. 84.8% a week earlier.
Source: Oil races higher - Cut seen as possible spur to economy
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