Oil is trading for between $47 and $44 a barrel, and someexperts think it will reach $50 in the near future. Thecauses are Iraq, Russia and hurricane Charley.
An attack on an Iraqi oil well, and the fact that oil fromIraq is still flowing at only half its former rate,contributed to this, but Iraq isn’t the main reason for theprice rise. And news from Venezuela that Hugo Chavez willremain as president actually caused prices to drop slightly,since he guaranteed oil market stability if he won (weimport about 15% of our oil from Venezuela). One majorfactor in the price rise is the dispute between the Russiangovernment and the giant oil company Yukos. Even tropicalstorm Charley had a hand in the price rise, since ittemporarily halted oil output in the Gulf of Mexico.
The reason small upsets in any oil-producing part of theworld affect prices here at home is that world oilproduction and oil use are about even. Oil analyst Jon Rigbysays, “The bottom line is that there is very little excesscapacity in the market.”
Oil expert Roger Tissot says, “Hurricanes in the Gulf ofMexico, Yukos, Iraq pipeline attacks and strong world demandare keeping spare barrels rare.”
Ever feel that dramatic changes are on the way?in the worldand in your own life?but you just can’t prove it? May youshould trustyour vibes.
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