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Thursday, September 23, 2004

$49 a barrel

SAN FRANCISCO (CBS.MW) -- Crude-oil futures resumed their climb toward a record high Thursday afternoon, even rising as high as $49 a barrel, with requests from refiners to borrow oil from U.S. reserves expected to do little to calm the market.

Crude for November delivery was up 65 cents at $49 a barrel on the New York Mercantile Exchange. Prices neared $49.40, the highest level ever recorded on the exchange. Earlier, the contract fell to a low of $47.50.
It looks like oil may go above the $50 mark at about the same time the Dow drops back below 10,000. Short-term predictions are difficult, but in the longer term of a few months to a few years, I think $50 will seem impossibly low for oil, and 10,000 impossibly high for the Dow. Those rapture index options seem like the best investment right now.