Oil Prices close in on US$100
Since trading began this week the price of oil has been inching ever closer to that US$100 per barrel mark. In trading yesterday, the price per barrel of Oil crossed the US$98 per barrel mark. This does not spell good news but by now we all know that. We will have to get use to living with the reality that the price will likely not go down significantly from that mark, in the near to short term future.
There are many reasons being put forward for the continued increase in the price of Oil
- The Turkish - Kurdish conflict in Northern Iraq
- Falling USA inventories
- The Impending Winter Season
- Weakening US dollar
- Decreased production in Mexico
The forecasts is for the US dollar to continue weakening against the major currencies such as the Euro and the Canadian dollars and continue recording new lows.
Whatever the reasons, Jamaica and the world has the current reality of high Oil prices to deal with. Its effect is being felt in higher gas prices, higher electricity bills, rising transportation costs and all areas dependent directly or indirectly on this precisous commodity.
Tags: Oil Prices