Business

Oil price record
by Zuzana Zelenakova

Oil prices have been gradually rising since 2003. The price for standard crude oil then was $25 per barrel. Then series of events in 2005 led to oil prices reach $60 per barrel in August and in October 2007 the price rose all of a sudden to $92 per barrel. And finally on February 29 oil prices hit the record number of $103.05 per barrel. The declining nominal value of US dollar should be considered as the main reason. Its weakness also prompted the price go up again to $104 per barrel on Monday, March 3. Analyst predict that the prices are very likely to rise continuously in the upcoming period and remain high for countries with developing economy such as India or China report an increasing demand for it. And what does the Organization for Petroleum Exporting Countries, or simply OPEC, say to that? Well, it wishes high but stable price that would be profitable for oil exporting countries and would not have a negative impact on oil consuming countries at the same time. The experts suggest that OPEC would go for something between $70 and $80 per barrel. When it comes to considerations about what effects could long-term rise of the prices have the analysts are rather skeptic and even pessimistic. They fear the whole process might result in recession or worse global oil crash. Not only the price of oil soared as dollar fell, other commodities such as gold, copper and wheat were influenced as well. "It's coming down to another commodity price rally," said Phil Flynn, an analyst at Alaron Trading Corp.

related story: http://news.yahoo.com/s/ap/20080303/ap_on_bi_ge/oil_prices;_ylt=Av0NDbXmng1g5umVWz5Sv5ys0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 1:44 AM