Oil prices soared above $71 a barrel Wednesday to reach a 2009 high, as investors poured money into crude markets to protect themselves against the inflation risks posed by a weakening U.S. dollar. Oil, which typically trades inversely to the dollar, has more than doubled in price in three months as traders also cheered news showing the worst of a severe U.S. recession is likely over. They brushed off data -- such as a 9.4 percent U.S. unemployment rate in May -- that suggest crude demand will remain weak. Even growing inventories have not checked crude's stellar rise.
Benchmark crude for July delivery was up $1.35 at $71.36 a barrel by noon in European electronic trading on the New York Mercantile Exchange. On Tuesday, it jumped $1.92 to close at $70.01.
"I wouldn't be surprised if we're testing $80 in a week or two," said Gerard Rigby, energy analyst with Fuel First Consulting in Sydney. "The momentum right now is too strong."
A weaker U.S. dollar and expectations massive fiscal stimulus spending could spark inflation have bolstered the market.
The Energy Department's Energy Information Administration said Tuesday that crude prices will likely average $67 a barrel in the second half of 2009, about $16 higher than the first six months of the year. A month ago, the EIA's price-per-barrel forecast for the second half of 2009 was $55.
The Energy Department also said global consumption of oil, which has fallen by nearly 2 million barrels per day this year, will begin to rebound in 2010 as the economy recovers.
Saudi Prince's $488 Million 'Flying Palace' Features Steam Room, Concert Hall
This Airbus A380 is being developed for Saudi prince al-Waleed bin Talal. Of course, the prince has not officially announced that this will indeed be his new home on the road, but enough news has been pieced together to link him to the purchase.
Not only is this the first Airbus A380 sold to a private owner, it is the most expensive private plane ever put together. For comparison - one of the most popular large private planes in the world is the Boeing Business Jet, which starts at "just" $42 Million.
Seriously, someone obviously sat down with some crayons, and decided to design the most insane, over-the-top plane they could. This thing has it all - starting with the special cylindrical elevator that comes out of the bottom of the plane. His Chauffeurs can then drive his Rolls Royce up the ramp on the rear, and park it in his on-board garage.
Relaxation comes from a steam room, Turkish bath, concert hall (with a baby grand piano) or in one of the five private quarters, complete with king size beds. Less fortunate guests will have to spend the night in one of the 20 "normal" first class sleeper suites.
When his Royal Highness needs to get some work done, he can take the elevator up to his boardroom and play with the touch screen TV's or the holographic projection system.
And finally in the lineup of ludicrous additions - get this - the well being room has a floor made from a giant screen, showing what the plane is flying over.
Total price? About $488 Million Dollars
Not only is this the first Airbus A380 sold to a private owner, it is the most expensive private plane ever put together. For comparison - one of the most popular large private planes in the world is the Boeing Business Jet, which starts at "just" $42 Million.
Seriously, someone obviously sat down with some crayons, and decided to design the most insane, over-the-top plane they could. This thing has it all - starting with the special cylindrical elevator that comes out of the bottom of the plane. His Chauffeurs can then drive his Rolls Royce up the ramp on the rear, and park it in his on-board garage.
Relaxation comes from a steam room, Turkish bath, concert hall (with a baby grand piano) or in one of the five private quarters, complete with king size beds. Less fortunate guests will have to spend the night in one of the 20 "normal" first class sleeper suites.
When his Royal Highness needs to get some work done, he can take the elevator up to his boardroom and play with the touch screen TV's or the holographic projection system.
And finally in the lineup of ludicrous additions - get this - the well being room has a floor made from a giant screen, showing what the plane is flying over.
Total price? About $488 Million Dollars
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