Crude oil surges above $46 a barrel

[arcos]

Crude oil surges above $46 a barrel

LONDON - Fears of an oil shock deepened on Friday as crude set new highs, underpinned by fresh evidence of strong Chinese demand and worries about sabotage in Iraq.

News of an explosion at the Whiting, Indiana refinery also helped push U.S. front-month September light crude to a record $46.65 a barrel on the New York Mercantile Exchange, before closing at $46.58, up $1.08, or 2.4 percent, on the day.

London Brent also marched into record territory, touching $43.92 a barrel before settling up $1.59 at $43.88. Oil prices have set new records in all but one of the last 11 trading sessions.

Worries about possible unrest in oil producer Venezuela during this weekend’s referendum on the rule of President Hugo Chavez helped fuel Friday’s gains, analysts said.

<snip>

http://www.msnbc.msn.com/id/5612507/

[phantom power]

1. We may be privileged to witness economic phase-change

[progressiveBadger]

2. if by economic phase-change you mean collapse

Here we come thunderdome...

[phantom power]

3. Crossing a threshold, resulting in fast, qualitative change

When the demand for a commodity begins to exceed supply, it results in a non-linear change in price. Suddenly, the dynamics are all in favor of bidding the price up, resulting in a relatively sharp and large price increase.

In this case, the effect is magnified by the fact that this particular commodity exerts influence over nearly every segment of every industrial economy on earth.

All the rules may change.

Or, you could just say "here we come, thunderdome"

I wonder if this is the true beginning, or will they pull back from the edge for a little while longer.

[Wright Patman]

4. * and Poppy

pushed the envelope a bit too far when they and others in the U.S. elite decided to shift operations to Slave Labor Heaven. Now the Slave Labor Middle Kingdom is competing for the same scare resource.

And it has several hundred million more citizens to bring online and out of the garage with their very own automobiles.