Archive for February, 2008

Oil Prices hit the $101 mark

Thursday, February 21st, 2008

February 20, 2008 will be remembered as the day when Olil Prices hit the US $101 dollar mark. For a world economy struggling this was the latest blow. A Barrel of all is reported to have traded as high as US$101.32 per barrel of Oil

The reasons been given this time has nothing to do with geo-political tensions. It all seems to be excuses based on the economic situation in the United States

1. The Federal Reserve in United States lower it economic growth forecast. This suggest that energy investors feel the need to look elsewhere for better gains

2. Energy Investors believe the Federal Reserver will cut interest rates. If the Federal Reserve does so, energy investors expect the US dollar to fall and are hedging their bets against the falling dollar.

This latest bout of increases is seen again as mere speculation. By this morning a barrel of Oil had fallen below the US $100 dollar mark was again.