WEDNESDAY FEBRUARY 20
Oil’s A-Boil

Why, despite the predictions of many, did oil shoot higher, touching $100.01 for the first time? Once again, nobody knows. Oh, there are theories, mind you: the front-month contract is about to expire, so ne’er-do-well traders are exploiting thinning volumes to push prices up; speculators are running amok, as usual; political instability in Nigeria and Venezuela (when are they not unstable, we’d like to know?); tightness in light crude supplies; more problems with rattletrap U.S. refineries; you name it. Whatever the reason, it’s happening again and investors are reviewing their assumptions about this strange, old market.

February 2008

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