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Sydney - Tuesday - June 21:- (RWE Aust Business News) US equities slipped into negative territory in late business as analysts assessed the implications of fresh record oil prices after the August futures contract climbed over $60 barrel. The bond market doesn't know which way to go because on the one hand it raises the inflationary bogey which could keep interest rates rising and on the other it is a tax on the economy.
Until now business has been able to cope with the higher cost of energy but at these levels, including the forecast of $70 a barrel, it could do serious damage to profit forecasts, according to some analysts.
The July crude contract rose another 90c to $59.37 barrel on the New York Mercantile Exchange and the August contract settled 70c ahead at $59.88c after the touching the record $60.02 mark during the session. Wall Street held up for a while but then sellers took over. The Dow finished 14 points lower while the S&P 500 shed less than a point.
Financial markets appear …