Oil prices are closing in towards the triple digit figure of $100 per barrel. The $100 is a very strong psychological barrier and the prices may move swiftly in either direction once this level is crossed.
The US light crude hit an all time high of $99.29 per barrel on Tuesday. This was in anticipation of the reduction in inventory level in Wednesday’s announcement. Also, there was fire at two US refineries.
The oil prices have risen by more than 40% this year from $61/barrel. Much of this increase can be attributed to the weakening dollar and concerns for supply of oil. Markets are adjusting for the future risks of US attacking Iran.
High oil prices are having an adverse impact on Asian economies importing oil.
King Abdullah of Saudi Arabia said "Oil is energy for building and prosperity, it shouldn't become a means of conflict". Saudi Arabia is the biggest oil producer in the Organisation of the Petroleum Exporting Countries (OPEC). OPEC has a share of more than 40% in oil exports.
The US light crude hit an all time high of $99.29 per barrel on Tuesday. This was in anticipation of the reduction in inventory level in Wednesday’s announcement. Also, there was fire at two US refineries.
The oil prices have risen by more than 40% this year from $61/barrel. Much of this increase can be attributed to the weakening dollar and concerns for supply of oil. Markets are adjusting for the future risks of US attacking Iran.
High oil prices are having an adverse impact on Asian economies importing oil.
King Abdullah of Saudi Arabia said "Oil is energy for building and prosperity, it shouldn't become a means of conflict". Saudi Arabia is the biggest oil producer in the Organisation of the Petroleum Exporting Countries (OPEC). OPEC has a share of more than 40% in oil exports.
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