1 post tagged “oil price reached $100”

HAPPY NEW YEAR 2008 !
After came from Singapore from End Year holiday,a  terrible news issued: Oil Price (light sweet) reached $ 100/barrel (100.81) in Wednesday, 2nd January 2008, triggered by negative sentiment from conflict in Nigeria . Not such a good present for New Year of Rat's year.

This is a sample article about oil price from Jakarta Post:

    Oil prices ease after hitting $100
     Oil prices eased slightly on Thusday, a day after striking US $100 ( 100.81 in NYMEX high chart-red) for the first time on growing concern about supplies and weakness of dollar.
     New York's main contract, light sweet crude for delivery in February, dipped one cent to $99.61 per barrel after spiking which to $ 99.98—which was two cents off its record high achieved Wednesday.
On Thursday, Brent North Sea Crude for February was down four cents at $97.80 after striking a record high of $98.50 earlier in the day.
     “The tight market condition mean that any major supply shocks could trigger a spike in prices to far higher levels,” Sucden analyst Andrey Kryuchenkov said on Thursday.
     Analyst said that violence in Nigeria, the biggest oil producer in Africa, was the catalyst for the spike to $100 on Wednesday.
     They added that crude was also being supported by concerns about stability in Pakistan, falling U.S. energy inventories and cold weather which was pushing up demand for heating fuel.
     Oil prices were also winning support from the weakness of the U.S. currency, which encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
     “More violence in Nigeria, concern about stability in Pakistan, oil-inventory expectations and gold old-fashioned cold winter weather were all responsible", according to Phil Flynn, an analyst at Alaron Trading.
     The United States Department of energy release its weekly energy stockpiles report on Thursday. Dealers expected another big drop in crude stocks—data that could send prices beyond $100.
     The inventory report would determine the near-term direction of the oil market, said David Moore, a commodities strategist with Commonwealth Bank of Australia.
     Traders were also looking ahead to a meeting of the OPEC oil-producing cartel due Feb. 1.

“If oil prices are still around $100 barrel in the run-up to the next OPEC meeting we would expect quotas to be raised again,” said Julian Jessop, chief international economist at Capital Economics.
   The Organization of Petroleum Exporting Countries froze its oil output levels at its last meeting in December, resisting calls for an increase to help cool sky-high prices which threaten to dampen global economic growth.
     The cartel produces about 40 percent of world oil supply.

The Jakarta Post
Friday, January 4, 2008