Oil prices surged Thursday to a record above $78 a barrel in world markets rattled by the escalating turmoil in the Middle East and the threat of supply disruptions in the Middle East and beyond.
Oil's march toward $80 a barrel seems inevitable, with multiple paths to get there.
It could follow another flare-up of the continuing Middle East violence. Or a hurricane in the Gulf of Mexico. Or maybe a refinery snag is all it would take.
Oil market analysts report that there is enough crude oil to meet daily demand of 85 million barrels a day, but it isn't just buyers of the physical commodity bidding up prices. Hedge funds and other institutional investors are making big bets on energy as a way to profit from global instability and to offset any losses the rest of their portfolios may sustain as a result.
The latest leap in oil has shaken the confidence of stock-market investors already fretting about higher interest rates and a slowing economy, though economists say most consumers and businesses appear to be absorbing higher energy costs surprisingly well.
Most of the global stock indices are down today amid uncertainty and fears of escalating tension and violence in the Middle East, which is adding to the existing pressures on the international community by a defiant North Korea that has tested several missiles recently.
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