Oil prices supported above $132

[UpInArms]

Source: Associated Press

BANGKOK, Thailand (AP) -- Oil was supported above $132 a barrel Monday in Asia by ongoing worries about global petroleum supplies and the outlook this week for the U.S. dollar.

The dollar has weakened over the last week after a modest recovery, and investors will be watching economic data out of the United States to be released over the next few days for further clues about the health of the world's biggest economy.

"The dollar's been swinging down again," said Mark Pervan, senior commodity strategist at Australia & New Zealand Bank in Melbourne, and that's "going to sway sentiment."

<snip>

The dollar, one of the factors that has fed oil's rally from about $65 a year ago, was slightly weaker against the yen and the euro in Asian currency trading early afternoon in Tokyo.

Midday in Singapore, light, sweet crude for July delivery was up 46 cents at $132.65 a barrel in electronic trade on the New York Mercantile Exchange. The contract rose $1.38 to settle at $132.19 a barrel on Friday.

Read more: http://hosted.ap.org/dynamic/stories/O/OIL_PRICES?SITE=MOCOD&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2008-05-26-01-12-34

[slackmaster]

1. I wonder what percentage of that figure is FUD?

Any guesses?

[ozymandius]

2. Oil prices rise to near $133 a barrel

BANGKOK, Thailand - Oil rose to near $133 a barrel Monday in Asia on persistent worries about global petroleum supplies and the outlook for the U.S. dollar.

The dollar has weakened over the last week after a modest recovery, and investors will be watching economic data out of the United States to be released over the next few days for further clues about the health of the world's biggest economy.

.....

Oil and other hard commodities are seen as hedges against a weakening greenback and inflation. Also, a weak dollar, the currency of international oil trade, makes petroleum products less expensive to Asian and European buyers.

.....

Nymex floor trading will be closed Monday for Memorial Day.

http://news.yahoo.com/s/ap/oil_prices

---

So this is where oil finds support. By this token - $4/gal. gasoline is our new reality.

[Zynx]

5. They are referring to short term support in the same way the NASDAQ once found technical support at

4800.

[ozymandius]

3. Investors will return from holiday with same fears

Amid oil price anxiety, investors parse housing, spending, manufacturing data this week

NEW YORK (AP) -- The three-day weekend probably didn't bring much relaxation to investors if they stopped at a gas station on the way to the beach or a barbeque.

With the average roadside price of gasoline pushing $3.88 a gallon -- and going for well over $4 at filling stations in some parts of the country -- energy prices have become a prime worry in the stock market.

That's not to say other concerns have dissipated. As Wall Street heads into this shortened week, it remains anxious about the still-slumping housing market, not to mention the ailing financial services sector. But so much of the economy's performance later in the year will depend on energy costs, so the focus will be on crude until investors see a substantial price retreat.

What's particularly troubling about oil's rise is that everyone knows it will affect the economy, but no one is sure exactly how. Experts are split over whether it will cause broad-based inflation, further economic weakness, or both at the same time.

http://biz.yahoo.com/ap/080525/wall_street_week_ahead.html

[ozymandius]

4. Wall Street faces bleaker picture amid oil surge, hawkish Fed

NEW YORK (AFP) - As Americans kick off vacation season, Wall Street is bracing for a darker outlook with surging oil prices likely to crimp an economic recovery and the Federal Reserve sounding increasingly hawkish.

The stock market, which had been on a strong run in April and early May, now looks increasingly fragile, analysts say.

.....

The market's tentative rally began to unravel in the past week as crude oil shot past 130 dollars a barrel for the first time ever and briefly hit 135 dollars.

To make matters worse, the markets got a clear message from the Fed that it would not lower interest rates further without a "significant" weakening of the US economic outlook.

.....

Despite the increasing gloom, market watchers say the stock market may be able to regain its footing, especially if there is some moderation in oil, which according to some is showing signs of a speculative bubble.

http://news.yahoo.com/s/afp/20080524/bs_afp/stocksusweekly

[CatholicEdHead]

7. It was a dim and quiet holiday weekend with $3.85 the going rate here

Not many boats or SUVs towing boats. Any cars about were mostly smaller 4 cylinders. I saw 3 car dealerships that recently went under and the rest overflowing with SUVs. It is a somber weekend from Fargo to Minneapolis.

[CountAllVotes]

8. I was out for awhile yesterday

I drove home about 8:00 p.m. last night (only an 8 mile drive - freeway most of it). I was the solitary car on the road!

Some Memorial Day weekend. Usually the freeways have more than ONE car on them at 8:00 p.m. on the eve of a National holiday.

:kick:

[UpInArms]

6. Small business crunched by fuel prices

http://news.yahoo.com/s/nm/20080526/bs_nm/fuels_smallbusiness_dc

FORT WORTH, Texas (Reuters) - Many U.S. small business owners say soaring fuel costs are eating their profits at a time when the economy is already weak, making them more cautious about expanding or hiring.

"In theory we could pass on extra costs with fuel surcharges," said Vince Puente, part owner of Southwest Office Systems Inc (SOS), which sells and services copy machines and other office equipment to companies in the Dallas-Fort Worth area. "However, our competitors are all bigger than us and aren't doing that, so surcharges would kill us."

"With gas rising 5 to 10 cents a week, you have to find ways to cut costs," he added.

<snip>

But with crude oil prices now above $130 a barrel -- doubling in the past year and rising sixfold since 2002 -- the squeeze of absorbing these costs for transportation and utilities is intense as revenue comes under recession pressures.

"Small businesses are caught in the scissors between high fuel costs and rather slow economic growth," said University of Maryland economist Peter Morici.

...more...<.i>