Oil Tops $100.00

Violence in Nigeria, supply disruption in Mexico and the prospect of another drop in U.S. inventories and more rate cuts drive crude to triple digits.

Oil prices kicked off 2008 by hitting $100 a barrel for the first time Wednesday, with violence in oil-rich Nigeria, the prospect of more interest rate cuts, a halt in Mexican imports and talk of yet another drop in U.S. crude supplies contributing to the milestone.

U.S. crude for February delivery hit $100 a barrel on the New York Mercantile Exchange just after noon ET. It slipped to settle up $3.64 at $99.62, a new end-of-day record. The previous trading record was $99.29, set Nov. 20, while the previous settlement record was $98.18, set Nov. 23.

The perfect storm economically is upon us. We have skyrocketing energy prices, an exceptionally weak dollar, huge budget deficits and a slowing economy. It is going to be a long year.