Oil rises above $83 amid strong Chinese demand

[phantom power]

Oil prices jumped above $83 a barrel Monday amid signs of strong Chinese demand for crude, a weakening U.S. dollar and a strong flow of speculative funds into commodities.

By early afternoon in Europe, benchmark crude for February delivery was up $1.09 to $83.84 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose 9 cents to settle at $82.75.

China said Sunday that oil imports rose 14 percent last year to a record high in December, part of a 56 percent surge in overall imports last month. The better than expected Chinese figures helped investors brush off Friday’s disappointing U.S. jobless report, which showed the economy lost 85,000 jobs in December and the unemployment rate was steady at 10 percent.

A weaker dollar also helped boost oil prices, as investors buy commodities as a hedge against inflation while crude priced in dollars becomes cheaper in other currencies.

...

“If prices continue to rise next week, it will be tempting to conclude that we are back in the casino-like oil market conditions we saw in 2008,” KBC said in a report. Oil hit a record high of $147 a barrel in July 2008.

http://blog.taragana.com/business/2010/01/11/oil-rises-above-83-in-europe-on-signs-of-strong-chinese-crude-demand-weaker-dollar-19298/

[Vinnie From Indy]

1. LOL! Bullshit!

What inflation?

If it isn't a "refinery" problem in bumfuck Alabama then it is a storm in the South Pacific or a butterfly shitting on a leaf in Brazil that become the laughable excuse of the moment to rape and pillage Americans in regard to energy prices. One thing is certain, the opaque energy markets and Wall Street combine to provide one more example where the average American is looked upon as prey by big business. This is especially true in markets like energy.

[DJ13]

2. Filled tankers sitting offshore around the world & these idiots think

it warrants higher prices?

Speculators should be taken out and shot.

[kenny blankenship]

3. $85 is the approx level where the US economy is often said to go into hard contraction

Not good news.

[hunter]

4. Bounce, bounce, bounce... all the way down the mountain.

This economy will be all broken bones and bloody meat by the time it stops.

[donco6]

5. Time for a windfall profits tax.

Didn't Obama say he'd push for one when oil rose above $80?

[Vincardog]

6. That was only a campaign promise. Do you still expect him to keep those?

[donco6]

7. Now that you mention it, it's probably part of his 11 for 2010.

According to some, that's a good ratio for promises.