A $10 increase in the price of oil is extremely significant because it means the price of almost everything will increase significantly. It seems like yesterday when I wrote oil hit $100 for the first time and it was as recent as may 6th I wrote it hit a new record of 122. I was going to make a post saying oil had hit a new all time high today of 130, but before I could get around to it, it hit 132 a barrel…( And now I have checked it again it is 135)
Oil Rises Above $132 on U.S. Supply Drop, Bank Price Forecasts
May 21 (Bloomberg) — Crude oil rose to a record above $132 a barrel as U.S. stockpiles unexpectedly dropped and banks raised price forecasts in the past week on expectations supply constraints and demand growth will persist.
Supplies fell 5.32 million barrels to 320.4 million last week, the biggest drop in four months, the Energy Department said. Oil for December 2016 delivery rose more than $20 a barrel, or 17 percent, after Goldman Sachs Group Inc. on May 16 raised its outlook to $141 a barrel for the second-half of the year.