posted on Oct, 18 2004 @ 03:56 PM
Oil prices have set new records amid concerns that there may not be enough supplies for the key winter period. With oil prices in New York, crude hit
$55.33 a barrel in pre-opening trade before falling down to $53.67. Oil prices are high in London also, crude went as high as $50.32, before ending at
$48.91. It is a possibiliy that crude can hit $60 by the end of the year.
Federal Reserve head Alan Greenspan has said that while oil prices do not yet pose a serious threat to the US economy, further increases could pose a
significant risk in terms of both growth and inflation. Bank of Japan Governor Toshihiko Fukui said on Monday that he expected Japan"s economy to
continue to recover but that "close attention" must be paid to the rising oil prices.
A Japanese government report last week said the economic recovery could be affected by the high price of oil, as well as by possible slowdowns in
demand from China and the US.
Victor Shum, oil analyst at the US-based energy consultants Purvin & Gertz said $60 a barrel is "certainly feasible", adding that a "new
milestone" has been reached.
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As seen in the graphic above, the cost of crude oil has a direct affect on inflation. As of now, the price of crude is continually rising.
"There is no doubt that at some point in the next six months we are going to see a price retreat," Daniel Hayes, an analyst at ANZ Bank in Melbourne
predicted on Monday.
Currently, West Texas Intermediate Crude Oil is priced at $52.95, up $2.17