As Rita Approaches Texas Oil Heartland, Oil Prices and Stock Market Move In Opposite Directions

by Steve

As Hurricane Rita now becomes a Category 5 storm heading straight for the Texas oil refinery infrastructure, a day after Sir Alan raised interest rates another quarter point based on inflationary fears post-Katrina, the market fell again by over a hundred points because oil prices shot up over $2 per barrel today, and fears of what the storm can do to our domestic oil production. And at least one analyst is more worried about stagflation than Greenspan’s phobia about inflation. Early indications from the mall would bear this out.