Oil Storms $100/Bbl
The prices for crude oil have soared to near the psychologically vital $100/bbl once the U.S. Fed trimmed the rates October 31. December futures for WTI cost $96.24 past morning in Moscow but adjusted to from $92 to $94 later on. The prices will rise to $100/bbl and above in November, the analysts forecast. But some of them are sure that the corridor of $89/bbl to $90/bbl is exactly the balance of demand and supply that is so sought for by the market.
The general forecast of the analysts is that, quite soon, the prices for crude oil will surmount psychologically vital $100/bbl and break the historical record of $101.7 (with regard to the U.S. inflation) that was set in 1980 after the Islamic Revolution in Iran.
The reasons are numerous, ranging from the geopolitical tension and hurricane season in the Gulf of Mexico to the dollar-euro movement. Nowadays, any news, even the one that is expected to drive down the prices, results in their growth.
Indeed, the last surge happened despite that OPEC widened production quotas, which grew by 500,000 bbl a day from November 1, 2007. Moreover, the prices for WTI rose October 31, although the U.S. Federal Reserve cut its rates blaming the reduction on further slowdown of the U.S. economy. But exactly the United States is the world biggest consumer of energy resources.
www.kommersant.com
All the Article in Russian as of Nov. 02, 2007
|
