High oil prices cause problems
by Nina Gotzmannova
Millions and millions years ago the prehistoric zooplankton and algae settled to the bottom of a lake in large quantities. The compression and heating with anoxic conditions had made a black or dark brown liquid. Despite of its color it's called liquid gold and its price is uncountable. Actually, it is countable. New record for barrel of crude oil is almost $ 94. The main cause is the slump of dollar. Early Monday morning euro hit a record high against the dollar and the situation is similar with all major currencies. Analysts are worried if the dollar is weak against other currencies and oil is mostly sold in dollar prices, it will be easier for them to buy too much oil or speculate with the oil. They want to avoid all speculations so the prices must go higher. The prices are as high as $ 93.53 for a barrel. But earlier the price was even higher, $ 93.80 a barrel, setting a new price record. Remarkable is, that in September 2003 the price was under $ 25 for a barrel. In August 2005 it begins to rise, to $ 60 a barrel and in September 2007 the price was over $ 80 a barrel. Comparing with 2003, the increasing is almost triple. But the analysts say that this raising of prices is already caused by speculations. Another boost can come this week if the Federal Reserve cuts interest rates, but the prices are not likely to increase more. Or the speculators still didn't say the last wordâ¦
related story: http://news.yahoo.com/s/ap/20071029/ap_on_bi_ge/oil_prices;_ylt=AgkMAKnJJnbwI4lHC5K0wSGs0NUE
| by Nina Gotzmannova for PocketNews (http://pocketnews.tv) |
PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.
posted by Blog TechSource @ 12:14 AM
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