Thursday, August 12, 2004

 

Oil prices contribute to stock dive.


Oil was the big topic of conversation in today's financial reports. The price per barrel reached a new high, closing at $45.50 making $50 per barrel not so far out of reach. The biggest contributing factor was the threat of production sabotage in Iraq, but a referendum election in Venezuela later on and the continued financial problems of Russian producer Yukos are all concerns.

The Dow tanked 123.73 points and the 10 year bond market, which affects interest rates, yielded 2 bps down.

The biggest point made today about oil prices, is that, adjusted for inflation, oil prices in 1981 were still higher than what we're facing today.

This report brought to you by the University of Louisville.

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