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Oil Price Flirts $114 Level
By Benny Nardino | April 15, 2008
The current crude oil price is creating global concern. With price hitting unheralded levels of $113.93 dollars per barrel today where will this end? Are we looking at $130 or $140 per barrel by the year end?
Recent volatilty in the financial markets, significant weakness in the dollar and uncertainty about deliveries are adjudged to have created the present spike. A few days back the US Energy Department hinted that energy stockpiles in the US had dropped across board on the week ending April 4.
The resultant effect was a slump in the oil stockpiles. With traders focusing on gasoline supplies ahead of the US peak demand seasons (starting in May), all these factor could only help push prices up. Whilst we may be able to find words that explains the price rise, the real issue still lingers. That is finding solution for the present mess.
A couple of years ago the thought of the above numbers that are being speculated today were unthinkable. Until those concerns begin to be addressed, finding ways to remedy these challenges, we still face the problem of getting oil price down. This is even a far more greater problem than the often peddled global warming.
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April 20th, 2008 at 12:36
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