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The assassination of Benazir Bhutto, along with a decline in crude-oil stockpiles, should keep prices above $96 a barrel today - and perhaps a lot higher. Actually, some analysts are surprised that the Bhutto news hasn't led to an even higher spike. Still, the numbers could be amplified because of thin holiday week trading (when there’s a rally with low trading volume, it's harder to find sellers). At last check, oil was trading at $96.65 a barrel. All this points to higher gasoline prices in the first few months of 2008, although keep in mind that this fall's run-up in crude wasn't matched at the pump. Other factors besides the oil markets are often at play in determining gas prices - stuff like a weaker dollar and refinery production capacity. (Bloomberg)
*Update: It turns out that oil inventories fell by 3.3 million barrels last week, more than double the 1.3 million barrel decline analysts had expected on average. (AP)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.