Oil Rises Above $89

The breaking point has been reached... most European countries cannot continue their normall business with the dollar and Euro at their present rates...

The spiral of the oil prices is a daily happening, everyday the market news is worse, now crude oil rose above $89 a barrel in New York for the first time after the U.S. dollar declined to a record low against the euro, enhancing the appeal of commodities as an investment.

Can the U.S. economy show signs of rising if the Federal Reserve cut borrowing costs ? NO... not as long as concerns that Turkey will use military force against Kurdish rebels in northern Iraq, a step that the U.S. says may damage Iraqi security and disrupt oil supplies,
Crude oil for November delivery rose to $89.46 on the New York Mercantile Exchange. Futures reached $89.56, the highest price since trading began in 1983. Prices are up 55 percent from a year ago.

Brent crude oil for December settlement rose to $84.61 a barrel on the London-based ICE Futures Europe exchange.

This will meam that soon in Europe as in other continents the final consumer price will also reach new values sending already fragil economies further in the red zone...