Recently CNN/Money posted an article called Who gets rich off $3 gas - who doesn't, which I thought I would bring to your attention. The rising cost of gasoline at the pump, now $4 in some places, is hurting many people on fixed incomes, like seniors and students, and those commuting long distances to work, or for work.

There is plenty of public fury to go around and while OPEC and the big oil companies get a lot of the blame, your local gasoline station owner has to face the heat close up and personal, even though on this food chain they benefit the least from rising prices.

The rescuing of the domestic financial markets (banks and Wall Street investment houses) by sacrificing treasury notes, exacerbating deficits, all the while lowering the prime rate and discount rate, have pushed oil prices higher, as oil producers to their chagrin, are paid in devalued dollars and are trying to maintain equilibrium.

After an afternoon sell off yesterday that left oil at $58.74 the bulls have come back to the market and for now it looks like we may finally be lifting up over $60 a barrel.

Last week I wrote that I thought we would be seeing $60 oil today, and that is exactly what we wound up looking at earlier in the day. Oil kissed the $60 level but was not quite able to push through. After trading at $60 momentarily we are now looking at prices at $59.45, up $0.71 on the day.

Cold weather still seems to be the name of the game for the precious crude and traders are hoping that tomorrow's inventory report will show that heating fuels have started to feel the impact of the wintry weather. The US National Weather Service is predicting that U.S. heating oil demand will be around 20 % above normal next week.

We will check back in later in the day to see if we are indeed able to successful hold above $60.



Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.

Last week we watched as oil continued to make it's charge up to the psychological $60 barrier. On Friday we saw oil close at $59.02 and looking strong. This week started out incredibly strong but has since cooled off in afternoon trading.

Cold weather has been the major factor in recent gains for the precious crude and that is exactly where traders are continuing to focus their attention. The real question now is if we are going to see oil using $60 as a resistance point or if we are going to watch prices surge through resistance and start to trade in the $60's throughout the remainder of the winter months.

A few days ago BloggingStock's own Jon C. Ogg reported that Jim Cramer opened his mouth and called ethanol a "colossal joke that everyone is in on."

Well, if that statement is true, then it's a well-read joke being enjoyed by America, China, Spain and Canada ... among others. This interesting report at SeekingAlpha is from Sunopta (NASDAQ (GS):STKL) (Toronto:SOY) and it might enlighten some naysayers as to just how viable ethanol really is.The fact is that for right now ethanol stocks are at ground level and in my opinion that's why Cramer doesn't like them. I'm thinking that he sees the potential deflating effect that ethanol stocks will have on the oil-supported mutual funds and he's just not willing to do the work it will take to adjust the thinking of some important fund managers. Pooh on him.

With his popularity at a record low, President Bush is riding his Mission Apocalypse missile into Iran. The New York Times [subscription required] describes the ease with which the administration manipulates oil prices for its political purposes -- with important implications for energy investors.

Last November, I suggested that gasoline prices had been lowered prior to the November election in a failed election ploy. And last October -- with U.S. aircraft carriers near the Iran border in the Persian Gulf -- I asked whether the administration was planning an October surprise -- involving an invasion of Iran. While I was clearly wrong on the timing, I am afraid I may not end up being wrong about the Iran invasion.

If you have not seen Stanley Kubrick's 1964 classic Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb, I urge you to do so now because it so aptly characterizes this administration's military mindset. The movie begins as General Jack D. Ripper launches an unauthorized nuclear attack on Russia to protect "our precious bodily fluids" from Communist infiltration. The movie ends with Slim Pickens, playing Maj. T.J. 'King' Kong -- a bomber jet commander -- riding a nuclear missile into Russia. With 58% of Americans wishing that Bush's presidency would simply end now, change the "communists" and "precious bodily fluids" to "terrorists" and "sanctity of marriage" and this Pickens' bomb ride seems an apt analogy for what Bush is doing as he slips us into a war with Iran.

Analysis provided by Paul Foster of Theflyonthewall.com:

U.S. stocks rallied today on lower interest rates and optimistic EPS from The Home Depot, Inc. (NYSE:HD), Target Corporation (NYSE:TGT) and Wal-Mart Stores, Inc. (NYSE:WMT). The S&P 500 was up 0.64%, NASDAQ 100 is up 0.99%, The Dow up .68% and the 10 year bond rate declined to 4.568%. The CBOE VIX was down .36 to 10.49.

ExxonMobil Corporation (NYSE:XOM) option implied volatility decreases as ExxonMobile trades near Record Highs. ExxonMobile is recently at $74.38. Crude oil is at $58.44 down 0.24%. ExxonMobile option implied volatility of 19 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

Dell Inc. (NASDAQ:DELL) November straddle priced for $1.60 move into 11/16 earnings per share and outlook. Dell Inc. is expected to report EPS on 11/16. AMTR says "we anticipate essentially in-line revenue and slightly better EPS as we believe DELL's operating margins likely bottomed last quarter as the company focuses on profitably offset by investments to improve customer service." DELL over-all option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional share price risk.

Sears Holding Corporation (NASDAQ:SHLD) November straddle is priced for $9.30 move into 11/16 earnings per share and outlook. Sears will announce its 3rd quarter EPS on 11/16. BEST says "strict inventory management should benefit the gross margin." BEST has a 'outperform' rating with a year-end price target of $182 on SHLD. SHLD call option volume of 17,388 contracts compares to put volume of 10,132 contracts. SHLD over all option implied volatility is at 35 is near its 26-week average according to Track Data. Near term option prices indicate near term risk; outer month option prices indicate non-directional price risks.

Option volume leaders today were Apple Computer, Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG), The Home Depot, Inc. (NYSE:HD), and Amazon.com, Inc. (NASDAQ:AMZN).