Yesterday, we actually saw crude futures drop . . . turns out the downtrend would be short lived. December-dated crude has added 85 cents in the first hours of trading and has topped the $94 level. Today's ascent is attributed to stronger-than-expected payroll growth for October (the strongest since May), which signals that the economy may not be as weak as some expected. One analyst noted that the economy has not hit the wall yet, adding that the $100 barrier can't last much longer. Let's remember back to January, remember the cold weather, the grey skies, $55-per-barrel crude? That is quite the increase.
This news comes after I was greeted by a report on our local morning news that experts believe we will see $4-per-gallon gas before Thanksgiving. Well, it seems that OPEC may finally have taken notice, rather than just sitting back and counting money. According to www.247WallSt.com, government officials, economist, and business leaders have realized that the rapidly ascending price of crude could cause a huge slowdown in the global economy. China is already rationing fuel. The Web site posits that OPEC's resistance to raise production could change quickly, as the cartel's members will not benefit from a deep recession that could take place. Douglas McIntyre finishes his entry by noting, OPEC is going to release more oil, and soon. My wallet and budget hope so.