Friday, May 29, 2009

Oil hits new 6-month high above $65

Economic fundamentals do not justify the recent runnup in the price of oil and gasoline. The speculators are back. Nothing was done to remove the speculative element, suggesting that prices will go much higher at the pump until the public causes a political response. That will come, but for now, expect oil and other commodity prices to keep kiting higher.

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