Oil Sets Another Record
Oil was the hot topic again today, closing at new record highs above $93 a barrel. The higher prices were triggered in part by poor weather conditions in Mexico, where Petroleos Mexicanos – one of the largest Crude suppliers to the U.S. – halted its production of 600,000 barrels a day due to an impending storm. Although expected to be clear by week’s end, weather-related events tend to dictate their own schedules on the marketplace.
Other news affecting the price of Crude today came from the familiar quarters of the Middle East, where Turkey and the Iraqi Kurds continue their geopolitical bob-and-weave. With the Kurds still threatened by the imposing Turkish military, the Iraqi foreign minister has warned of serious consequences if the Turks were to begin a ground attack.
The chart shows an obvious uptrend since mid-August. With prices moving as much as they have since then, Oil bulls may be getting ready to take a break if this news cools off for a while. Today's closing price is still well above the 15- and 25-day moving averages. Oil is very hot right now, but for how long?
