Oil hits year high

Thanks Aron for this note from AG Edwards

Crude oil surges above $78 a barrel
Crude oil rose to a one-year high in New York on speculation demand will outpace supply as refiners increase fuel production in preparation for the winter months. An Energy Department report tomorrow may show that U.S. crude oil supplies fell for a fourth week, according to a Bloomberg News survey of analysts. AGE energy analyst Eric Wittenauer said: “We’re waiting for the market to break decisively through the $77.50 level. With the index and fund money that’s poured into the market there will continue to be upward pressure on prices.” Crude oil for September delivery was up 1.15 at 77.98 a barrel at 12:56 p.m. in New York. Earlier crude traded at 78.15 a barrel, the highest intraday price for a contract closest to expiration since July 14, 2006. Prices are up 28% this year.