Oil prices have yet another new high today, pushing above $54.
There are many events right now that are increasing the oil prices.
Unions in Nigeria launched a strike, about 200 workers in Norway are striking, there was a disruption in production in the Gulf of Mexico recently
because of the hurricanes and of course there is the continuing war in Iraq and threats of air-strikes against Iran's nuclear facilitates which could
lead to something much bigger. All of this is happening at a time of increasing consumption from countries like China.
timesofindia.indiatimes.com..." target="_blank" class="postlink">Times On-Line
LONDON: World oil prices stormed above 54 dollars for the first time Tuesday as strikes in Nigeria and Norway raised worries about possible supply
shortages during the northern hemisphere winter.
The price of reference light sweet crude for delivery in November rose 40 cents to 54.10 dollars a barrel in electronic trading on the New York
Mercantile Exchange, the highest in the contract"s 21-year history.
"A lot of people in the market are talking about 60 dollars now," said US-based Refco analyst Marshall Steeves.
Please visit the link provided for the complete story.
The production increase promised by the Saudis is not enough to reduce the prices at this time as all they have to offer is high sulphur crude that
western refineries are shunning.
This price increase comes at a bad time for President Bush, who is running for re-election. These high prices can weigh down on the stock market and
on the economy as a whole.
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[edit on 12-10-2004 by AceOfBase]