Oil back up

Traders say that refineries affected by Hurricane Ike are still not back. Therefore the price of crude oil is up today on fears of a shortage. The US lost about 20% of its production and 97% of gulf rigs are still not producing. Flooding was more extensive than initially thought.

oil over $135

It seems that every day oil sets a new record. Today oil rose over $135/barrel topping yesterday's $133/b and on its way to over $200/b. This is very bad new for any economic view. Even the most sanguine investors know this is destroying the purchasing power of consumers.

Some say speculative fever is turning the oil pit into a feeding frenzy, but oil smashed $135 on supply shortages. In order words we are running out of oil. The move to convert corn to ethanol has sent food prices soaring, Food to fuel is a fuelish idea, soon we will have little of either. I predict massive shortages in the future of both food & fuel.