Yesterday, a forward-looking co-worker mentioned that he would be interested to see if Barack Obama's capture of the Democratic nomination for presidential candidate might spike oil prices. While one would surmise that any major U.S. political event would be translated into financial markets and oil prices, it seems that other, more economic, factors ruled the day. Oil prices dropped below $124 per barrel, more than $11 below May 22's trading record of $135.09 per barrel, not in reaction to the historic political event, but because Federal Reserve chairman Ben Bernanke reported that inflation has become a prominent concern. The Fed chairman's comments about rising prices and his inclination to leave interest rates alone for now sent the dollar higher and lessened the chance that oil would exceed the record highs of last month, at least in the short term. We exhale today, but wait for the next supply disruption. Did I just hear someone mention hurricane season has started? You, go lay down by your dish.
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