U.S. crude ended up 74 cents at $100.74 barrel, the top settlement on record, after hitting an all-time high of $101.32 a barrel earlier in the day. The gains sent crude near the all-time inflation adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution, according to the International Energy Agency.
Think about better insulating your home. Or maybe cut your commute by living closer to where you work. Figure out how you can adapt to the coming decline in world oil production.
“We’re looking at retail prices for regular unleaded of $3.50 to $3.75 in April and May,” said Tom Kloza, an analyst with Oil Price Information Service. “Those will be records.” The record of $3.22 a gallon was set last May.
Mr. Kloza also predicted record highs for diesel and jet fuel “within the next 90 days.”
While the oil price rise gets the most press, the huge increases in grain prices suggest the presence of wider inflationary pressures.
Wheat for May delivery shed 14 cents to settle at $10.325 a bushel on the Chicago Board of Trade, after earlier falling as low as $10.22 a bushel. Wheat hit an all-time high of $11.6975 a bushel earlier this month.
Other agriculture futures traded mixed. Soybeans for March delivery fell 0.75 cent to settle at $14.17 a bushel on the CBOT, while March corn gained 3.5 cents to settle at $5.235 a bushel.
|Share |||By Randall Parker at 2008 February 20 09:11 PM Economics Energy|