WSJ via Raw Story: Investors see $100/barrel oil

[Bush_Eats_Beef]

http://rawstory.com/news/2005/Journal_Investors_see_100bar_0830.html

Hurricane Katrina, which killed dozens and left a million without power, sent stocks sliding in New York trading Monday, with oil prices over $70/barrel. The market got some good news from the Louisiana Offshore Oil Port, or LOOP, which suggests no catastrophic damage to the energy shipment hub south of New Orleans. Even so, refineries are closed across the region and oil rigs are floating like rubber ducks in a giant bathtub.

The WALL STREET JOURNAL REPORTS: "The sight of oil topping $70 alarmed analysts and sparked worries that prices could keep going higher. Analysts projected a possible slow creep: "We could see oil hovering around $75, and then we could get to $80 and $85 and then $100 a barrel is right around the corner," said Robert Pavlik, chief investment officer at Oaktree Asset Management.
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"The Dow Jones Industrial Average fell 65.12 points to 10397.93, wiping out Monday's gains, as 27 out of the 30 components slid into the red.

"Wal-Mart Stores declined 1.7% after it said 123 of its stores remained closed because of the hurricane. Home Depot, which gained about 2% yesterday as investors bet the home-improvement retailer stood to gain from rebuilding after the storm, dropped 2.5%.

[phantom power]

1. Markets are so irrational.

Last week, when oil was trading at $69, most people were poo-pooing the idea of $100. But now that it's risen one more dollar, everybody is suddenly on the bandwagon.