Why Crude Oil Prices Increase ???

Friday, April 11, 2008 1 comments

Crude oil prices behave much as any other commodity with wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to change in demand as well as OPEC and Non-OPEC supply.

In the absence of prices control the U.S. price would have tracked the world price averaging $26.16. Over the same post war period the median crude oil prices was $18.53 in 2006. That means that only 50% of the time from 1947 to 2006 oil prices exceeded $18.53 per barrel.

But on Thursday 2008, Crude oil hit a new all-time high of $105.97 a barrel. In my opinion (from article and news that I got) the reasons of Crude Oil Price increase significant are :

  • Weakness of US dollar
  • OPEC's decision not to boost supplies
  • Some speculations and traders make a huge speculation with move their investment to gold and crude oil

If the Crude Oil will increase more and more for next days, I think we are in the big trouble, because inflation will be high and World Crisis II will come.You can see the forecast crude oil price here

Links to this post

1 comments: to “ Why Crude Oil Prices Increase ??? so far...

  • Karlonia @ Internet Marketing Blog April 12, 2008 at 2:04 AM

    Wow, those oil prices are really getting up there! It wasn't that long ago when I remember oil being around $20 per barrel.

    Meanwhile, the higher crude oil prices have kept gasoline prices higher as well. Currently regular unleaded gasoline is up to $3.20 per gallon here in Corpus Christi, Texas, and we usually have relatively low gas prices because of our proximity to local oil refineries.