Crude oil prices posted their largest ever one day gain today spiking more than $16 dollars amid concerns over the governments plan for bail-out of the financial system. Crude oil futures soared to over $130 per barrel before finally settling at $120.92 making a record one day gain of $16.37. Across the board, commodities have been strengthening as the dollar weakens against other foreign currencies. Commodities are being used as a currency hedge, and with the weakening dollar, prices for all commodities are rising. The government's proposed $700 billion bail-out of the financial system to buy out failed mortgages is sending investors to commodities in droves because commodities are generally seen as relatively safe investments. This surge in price comes amid a general falling of oil prices over the past few weeks, but it is evident the relief of those few weeks was short-lived.Monday, September 22, 2008
Crude Oil Prices Up More Than $16, 09/22/08
Crude oil prices posted their largest ever one day gain today spiking more than $16 dollars amid concerns over the governments plan for bail-out of the financial system. Crude oil futures soared to over $130 per barrel before finally settling at $120.92 making a record one day gain of $16.37. Across the board, commodities have been strengthening as the dollar weakens against other foreign currencies. Commodities are being used as a currency hedge, and with the weakening dollar, prices for all commodities are rising. The government's proposed $700 billion bail-out of the financial system to buy out failed mortgages is sending investors to commodities in droves because commodities are generally seen as relatively safe investments. This surge in price comes amid a general falling of oil prices over the past few weeks, but it is evident the relief of those few weeks was short-lived.
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