Oily News

Before the start of the summer, in our May 24th Posting, we advised our
readers to be cautious about rising oil price. Our predictions in that
posting came to be true.

Yesterday in a speech in Tokyo Fed Chairman Alan Greenspan said,
"Although the global economic expansion appears to have been on
reasonably firm path through the summer months, the recent surge in
energy prices will undoubtedly be a drag from now on."

Among other topics ..he mentioned about china and expressed his concern
about the oil wastefulness of the planned Chinese economy. While the
U.S. and Japanese economies have significantly trimmed their use of
energy relative to their Gross Domestic Products, the Chinese have not,
he said. "At present, China consumers roughly twice as much oil per dollar
of GDP as the United States," Greenspan said.

Today crude for November delivery climbed $1.73, or 2.8%, to finish at
$64.36 a barrel on the New York Mercantile Exchange, its highest closing
level since Oct. 3. Meanwhile, November natural gas added 66.8 cents
to close at $13.887 per million British thermal units, its highest ending
level since Oct. 5.

Prices for Petroleum-product also increased. November heating oil
tacked on 3.33 cents, or 1.7%, to close at $1.9833 a gallon, and
November unleaded gasoline closed at $1.8153 a gallon, up 6.67 cents,
or 3.8%.

Gold futures closed with an almost $5-an-ounce gain at $472.6 as the
rally in oil rekindled inflation concern. This is 10.7% gain from the level of
$426.9 on May 11 when we advised our readers to accumulate Gold.