Oil price is hitting 99.62USD/barrel therefore Gold price jumps into $860/oz! So presumably all stock market will be slump today.
But why oil price will go up again?
Here is what I find from AP.
[Violence in Nigeria helped give crude the final push to $100. Bands of armed men invaded Port Harcourt, the center of Nigeria's oil industry Tuesday, attacking two police stations and raiding the lobby of a major hotel. Word that several Mexican oil export ports were closed due to rough weather added to the gains, as did a report that OPEC may not be able to meet its share of global oil demand by 2024.]
And this makes it worse.
[The White House on Wednesday said it would not release oil from the nation's strategic reserves to drive prices lower.]
Based on supply/demand theory in economics, oil prices are most likely going higher in 2008. China and India are the most consumers of crude. Beijing will do whatever it takes to keep China stable in order to held Olympic game in this summer. And no reason to think why India will stop her economic growth.
Gold price has been predicted to exceed $1000/oz for years. Green energy and alternatives, like solar power, will be considered by many companies in a long run.
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