Oil price breaks post-Iraq war high

[UpInArms]

http://www.channelnewsasia.com/stories/afp_world_business/view/75782/1/.html

NEW YORK : The crude oil price edged to a new post-Iraq war high, propped up by terrorism nerves after the Madrid blasts and the prospect of an OPEC production cut, analysts said.

New York's benchmark light sweet crude contract for delivery in April rose four cents to 37.48 dollars a barrel, the highest since March last year in the run-up to America's war on Iraq.

<snip>

The New York contract could spike to 37.95 dollars on Wednesday, said Refco market analyst Marshall Steeves.

"There is the expectation that OPEC (the Organization of Petroleum Exporting Countries) will finally cut production on April 1 though I have not seen any firm signs of it yet," Steeves said.

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[swag]

1. As mentioned in the Economics forum - this is bad news

This is bad news not only at the gas pump and at home, but
also for US industrial profits and for the incipient economic
"recovery."  Can S&P 500 really earn $61/share
in profit for 2004 with this and other commodities spiking so
tremendously?  Can an economy continue to grow swiftly with
this kind of tax levied by the oil market?

Stay tuned.