BRENT APPROACHING $125!

One has to wonder where we are going here as far as the oil price is concerned. Brent ICE which is the world wide price is approaching 125 which would be the highest close since last May. Up until now stocks, oil, and the euro have been moving together. But i think we are getting to a point where the price in crude is disconnecting from economic activity. It is about Iran and Israel and other mideast threats. If crude breaks above 125 it will be due to some sort of news event. Is the market telegraphing Israel getting ready to take out Iran? If that happens look for oil to challenge its July 2008 high around 150 with gasoline at 5 bucks a gallon. This cannot be good.

MLPS open a little lower this morning. No news and no upgrades or downgrades. Moves at the open are small in nature for the most part. Euro markets are lower. Metals are higher and the dollar is higher against the yen but lower against everything else.