Wednesday, November 7, 2007

Oil hits $97 a barrel

NEW YORK - Oil futures jumped to a new record of $97 a barrel Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks.

Those concerns were further fed by a government prediction on Tuesday that domestic oil inventories will fall further this year while consumption rises.

Oil was already up before news of the blasts in northern Afghanistan that killed 64 people and the attack in Yemen. Severe weather forecasts for the North Sea, expectations that domestic crude supplies fell last week and the weak dollar all contributed to the latest move upward.

While Afghanistan doesn't produce much oil, traders watch for the possibility that any escalation in the conflict there between U.S. armed forces and Islamic militants could spill over into other countries, disrupting oil supplies out of the Middle East.

Crude prices are within the range of inflation-adjusted highs set in early 1980. Depending on the how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today. - AP


The price of that commodity is getting higher. Whats worse is, when it reaches here in the Philippines, it passes thru a lot of processes (people) thats why it gets a lot higher. Another reason is, even if they still have stocks (tons of it), they increase immediately when the world prices increase. This is because of their greedy attitude... correct me if im wrong.

Off topic Fuel tip: It is better to fill-up in the morning when it is still cold. Another tip, its better to fill-up your tank when it is already in half than waiting for it to be emptied.

Philippines Political News online

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