Business

Oil prices rocket high

The next luxurious thing will probably be a car, not to mention the plane. If we take a closer look at the increase rate of the oil prices, we can see that we will afford less and less to fuel our car. In spite the fact that on Thursday a government report showing that the nation's crude oil supplies rose more than expected last week led to a slight fall in oil price, gas prices rose more than 3 cents overnight. According to the Energy Department's Information Administration crude oil inventories rose by 4.2 million barrels last week that is above the 2.9 million barrel increase forecasted by analysts surveyed by Dow Jones Newswires, while supplies of distillates fell by 4.5 million barrels. Opinions on the oil price increase are divided, if many analysts think that due to the rising supplies and the falling demand noted in a number of recent reports oil prices are bound fall, there are others take into account that prices have spiked in recent days on buying fueled in part by investors attracted to the oil market by the falling dollar, therefore they expect gas prices to peak this spring well above last May's record of $3.227 a gallon. Like Tim Evans, an analyst at Citigroup Inc. in New York, says it, the difference of opinion leads to an unstable market. On the New Yorl Mercantile Exchange light, sweet crude for April delivery fell $1.47 to settle at $98.23 a barrel, while March oil reached a record high of $100.74 and a new trading record of $101.32 before expiring Wednesday. Furthermore, AAA and the Oil Price Information Service revealed that retail gas prices rose 3.3 cents Thursday to a national average of $3.086 a gallon, mostly due to the switch over from winter-grade gasoline to the more expensive summer-grade gas (summer grade gasoline designed to reduce pollution trades as much as 15 cents higher). Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J, states that retailers are just trying to make up the difference and to assure that their pumps and tanks are completely clear of winter-grade gas by June 1 when the government requires summer fuel to be sold. Gasoline supplies rose also to a 14-year high with March gasoline futures settling at $2.522 a gallon on the Nymex Thursday, which could limit spring price increases. April Brent crude futures settled at $96.24 a barrel in London on the ICE Futures exchange. All this warns us to pay more attention to where we go and how much it will cost us, all our lives being nowadays conditioned by oil and gas.

related story: http://news.yahoo.com/s/ap/20080221/ap_on_bi_ge/oil_prices;_ylt=AlxbQbswxF16KKGdeNwRmW.s0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 5:30 AM