Oil Is Steady as Demand May Climb on Obama Bank-Rescue Plan

January 22nd, 2009

Another factor which could lead to higher oil prices is Obama’s upcoming trillion dollar clusterf*ck orgy of government spending on “recovery.” I don’t know what that’s going to entail, but it will, by definition, require a hell of a lot of oil.

—Oil

Via: Bloomberg:

Crude oil was little changed after rising on speculation a bank-rescue plan by President Barack Obama will help boost economic growth and increase fuel demand.

Oil climbed 6.6 percent yesterday as stocks rallied on the new U.S. president’s plans to complete an assistance program that can be paired with the $825 billion stimulus package. U.S. crude-oil inventories probably rose last week as refineries cut operating rates, a Bloomberg News survey showed.

“The expectation for further investment was one of the influences behind the oil price,” said Gerard Burg, a minerals and energy economist with National Australia Bank Ltd. in Melbourne. “The Obama inauguration was seen as a positive since it brings some certainty with the new government in place.”

Crude oil for March delivery was at $43.54 a barrel, down 1 cent, at 12:49 p.m. Singapore time after rising as much as 68 cents, or 1.6 percent, to $44.23 a barrel on the New York Mercantile Exchange. Oil has fallen 2.4 percent since the end of December and is 52 percent lower than a year ago.

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