So, That Was Short-Lived -- Oil Back Up >$2.65

Updates

Later, same evening: Saudi denies; before market close, oil dropped back from $110 to 108. Futures now off exactly one cent. It certainly suggests the oil market is very, very skittish: not only does a rumor send oil back to highest level since mid-2008, but it didn't drop all that much when the story was found out to be a hoax; no explosion, at least according to the Saudis.

Moments later: CNBC says there are reports of a SINGLE explosion on a pipeline in Saudi. Not confirmed.  CNBC talking head: "I don't think Saudi Arabia is under attack here...Brent $145 is the top. The market is handing the news (the Saudi oil explosion) quite well....we have to get the Keystone XL pipeline in....big issue going forward....a big issue in the fall...Brent in the near term? ... waffles ... Saudi should raise their production [despite the fact their pipelines are blowing up."] Here's the link.

Original Post 

That took me completely by surprise.

Whenever there's a jump like this, one has to ask why? This is not due to weakness/strength of the dollar; it's not due to day in/day out news. Something big is going on. Generally. Today, maybe not.

Maybe more later, as CNBC folks talk about it, if they do. They have a script to follow and oil back to $110 was not in their script today. Right now, oil is back to $109.99. That's about as close to $110 without going over.

I do know that SecEn Chu appreciates these high prices; high-priced oil makes renewable energy and "green" vehicles more competitive.

My wife uses similar reasoning when she tells me she saved hundreds of dollars due to all the sales of which she took advantage.