Wednesday, April 9, 2008

Oil Futures Break another Record: Close over $110 a Barrel

Crude oil futures broke another record today, as they surged to a new intraday high of $112.21, and broke another record when it closed at $110.87 a barrel.

While the increase was connected to news from the Energy Information Administration that oil inventories in the U.S. had fallen by 3.2 million barrels last week, speculators continue to play a big role in the price of oil futures. According to the Energy Information Administration, gasoline inventory also slid, falling by 3.4 million barrels last week.

"Fundamentally, there's no reason we should be at these levels. Speculation has definitely taken over this market," GRZ Energy trader Anthony Grisanti told FOX Business this morning. "I think $120 is right around the corner. There is nothing that can turn this market around at this point."

Oil inventory in the U.S. stands at 316 million barrels as of April 4.

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