Monday, March 17, 2008

Oil Worths More Than $100 a Barrel!
by Milota Sidorova


American oil market scores a slow, yet surprising change these days. The increase of 0.9 cent per gallon has come overnight, establishing current national price of $3,161. The report was released by The Oil Price Information Service, completing, that the rate is only 18 cents below the record May 2007, $3,227 per gallon.Despite last week' s circumstances, pointing to the dismail report of The Labour Departement, claiming the increase of 19,000 unemployment benefit applications and the general bungle all over the slowering American market, a jump, according some, a breaking point came out.Looking behind the increase, one must connect the international lowering dollar rate, that as it seems, creates attractive environment for more foreign investors. Let' s count the faithfull Fed promise of cutting rates and Bernake comments that try to imply the American market into a safe distance from stagnating economy and increasing inflation risks. As more and more investors push their money into the sale, the oil race seems to begin. Some analysts now claim ''oil as a real financial instrument.''Passing over a short history review, one may recall the national price of $38 a barrel from early 1980' s. According the estimates, a 1980' s barrel would be worth of at least three times more, reaching from $99.94 to $104. Comparing a different calculating system of those decade, today' s results can be quite blurry to say.The new inflation calculator system was established in 1983. Today The Bueau of Labor Statistics estimates that $38 in 1980 is worth current $97.34, while a Federal Reserve Bank of Minneapolis calculator puts $38 in 1980 dollars at $99.43. Leaving the history behind, estimates say about an increase of $3.40 even more a gallon for this springtime.Rumours about fundamental operations over the sale yet seem to not influence ."(Fundamentals) have no relationship to price right now," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. He claimed that, if prices would be hanging over supply and demand of fundamentals, they would be falling.

related story: http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/oil_prices;_ylt=ArXEUQK0mxDcFvw29bY1R2ms0NUE

by Milota Sidorova
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.

These news are original content from young talents around the world and are selected for you by Chris Cantell.

edited by Tatiana Kucharikova

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