Business

Drop in oil price
by Ivana Svinciakova

The oil price have slightly declined after the International Energy Agency (IEA) said that the supplies are rising. IEA represents developed countries and yet, for the second month didn't increase oil demand as it has predicted. IEA says that it only reacted to the high prices. Previously, there was an incontrollable grow in prices caused by the uncertainty in the market regarding the OPEC output and the prices nearly reached $100 a barrel. There is a dispute about the oil price. According to the biggest oil producer - Saudi Arabia - the real price based on production costs is only $60. This means that the price is not a reflection of the inquiry and supply but in facts is more influenced by what somebody says. According to Mr. al-Naimi, Saudi's Arabia's powerful Oil Minister, even though the oil prices are high and Saudi Arabia increase it's capacity production on schedule there is no assumption that they'll drop as the developing countries are growing at a very fast pace - between 7 per cent and 10 per cent-plus. This means that they are going to need even more energy. This constat grow in demand will not allow the prices to fall.

related story: http://news.yahoo.com/s/ap/20071114/ap_on_bi_ge/oil_prices;_ylt=AqWuRFAyvuQQbnSxluDuX06s0NUE

by Ivana Svinciakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 3:38 PM