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Tuesday, April 29, 2008

$200 a Barrel Oil and More

OPEC warns Oil Could Reach $200
Chakib Khelil, president of the Organization of Petroleum Exporting Countries, blamed the falling value of the US dollar, which makes other assets, including oil, more attractive for foreign investors.

Of course, this is old news to you, if you read my Money and Markets column: Oil Tops $119! What's Next ...

In that column, I wrote: "In fact, I think we need to come to grips with the unthinkable — oil prices running much higher, say to $200 a barrel."

In other news ...


Crude Oil Declines as BP Prepares to Restart Forties Pipeline in the U.K. Crude oil fell as BP Plc's Forties pipeline prepared to start after a two-day shutdown and as the U.S. dollar strengthened, limiting the appeal of commodities as an inflation hedge.

Gold Declines for First Time in Three Days as Dollar Gains on Rate Outlook Gold fell for the first time in three days in London as the dollar strengthened against the euro, diminishing the metal's appeal as a hedge against further drops in the U.S. currency. Silver and platinum also declined.

Corn Futures Advance to Record in Chicago as Weather Delays U.S. Planting Corn futures in Chicago climbed to a record on supply concerns after a government report showed farmers in the U.S., the world's biggest producer, had planted only half as much as a year ago because of cold, wet weather.


China May Revalue Yuan by 10% to 15% to Curb Prices, Says JPMorgan's Gong China may revalue the yuan by 10 to 15 percent in the coming months as policy makers seek to temper inflation close to an 11-year high, according to Frank Gong, head of China research at JPMorgan Chase & Co.


Record Bond Sales, Stocks Show Bernanke Progress Fixing Financial System Federal Reserve Chairman Ben S. Bernanke is persuading investors that the financial markets are working again.

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