Oil prices, The Oil rose to an all-time high of $80.20 on Thursday after hurricane Humberto forced the closure of some US Gulf refiners and stoked concerns of fuel shortages this winter.
Investors were building up positions in the market - their enthusiasm growing thanks to a market structure that can virtually guarantee favourable returns.
US crude traded 21 cents lower at $79.70 a barrel, having eased from its new record. London Brent crude also shed 21 cents to $77.47. US gasoline prices soared by 1.7% to $2.05 a gallon after hurricane Humberto shut oil shipping channels and three refineries as it slammed onshore Texas.
"There are so many things that affect the price of oil," Hasan Qabazard, director of OPEC research division, said. "We have a storm working its way to American facilities. We have an economic crisis."
Though quadruple the levels of 2002, price of oil - when adjusted for inflation - is below the $90-a-barrel peaks of the Iranian Revolution in 1979 and the start of the Iran-Iraq war the following year. "Modest demand growth combined with no significant supply increases has caused oil inventories to decline sharply, ," said Jeffrey Currie of Goldman Sachs.
Investors were building up positions in the market - their enthusiasm growing thanks to a market structure that can virtually guarantee favourable returns.
US crude traded 21 cents lower at $79.70 a barrel, having eased from its new record. London Brent crude also shed 21 cents to $77.47. US gasoline prices soared by 1.7% to $2.05 a gallon after hurricane Humberto shut oil shipping channels and three refineries as it slammed onshore Texas.
"There are so many things that affect the price of oil," Hasan Qabazard, director of OPEC research division, said. "We have a storm working its way to American facilities. We have an economic crisis."
Though quadruple the levels of 2002, price of oil - when adjusted for inflation - is below the $90-a-barrel peaks of the Iranian Revolution in 1979 and the start of the Iran-Iraq war the following year. "Modest demand growth combined with no significant supply increases has caused oil inventories to decline sharply, ," said Jeffrey Currie of Goldman Sachs.
Via|Times of India
With oil hitting new highs again, below we highlight the average commodity analyst price forecast for Q3 '07, Q1 '08 and Q4 '08. As shown, analysts (as surveyed by Bloomberg) are expecting declines in the commodity through year-end 2008.
Expectations for the end of this quarter are $66.87, $11+ lower than current prices. Q1 '08 expectations are $63.35, and Q4 '08 expectations are $58.50. We haven't seen oil in the $50s since March.
Expectations for the end of this quarter are $66.87, $11+ lower than current prices. Q1 '08 expectations are $63.35, and Q4 '08 expectations are $58.50. We haven't seen oil in the $50s since March.
Via|SeekingAlpha
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