Hurricane Ike likely had something to do with the spike, too. While not a lot of platforms were damaged in the storm, there was some delayed production and there’s not as much oil sitting around in Louisana and Texas right now.
As a result, there’s a spike in which people grab for contracts so they can take delivery. “This was kind of an anomaly mostly just driven by lingering effects of the hurricane,” says Hyland.
Oil today is down on profit-taking after yesterday’s really, reports Stevenson Jacobs for the Associated Press. But market watchers are saying that oil is showing some signs that it’s poised for another climb. A shrinking global supply, dollar weakness and nerves about the government’s proposed bailout plan could contribute to another spike, they say.