Friday, April 11, 2008

Oil prices at $112

The global oil prices will be touching $130 a barrel pretty soon. Ouch! That hurts but *yawn* are you sure it’s not just another prediction or myth? I know Malaysian Prime Minister Abdullah Badawi doesn’t like what I’ve written. Petronas could hardly laugh because in spite of the new crude oil’s record that topped $112.21 a barrel the first time in the futures market Wednesday, the company knew it needs to subsidize the same amount that it’s profiting. Badawi’s balls are within your grip since he couldn’t raise the fuel price after the recent 12th general election no matter how desperate he wishes to, thanks to your votes. Anyway I’ll leave that discussion for another day.
Analysts believes crude imports fell in part because fog closed several shipping channels in Texas and Louisiana that serve as vital oil import conduits last week. However I believe the oil prices could just escalate as long as the U.S. economy is cracking and Uncle Ben needs to cut the interest rate. Furthermore elsewhere it is cheaper to buy oil now due to weaker dollar. With current $112 a barrel it’s only another $18 to go before the oil prices reach the $130 a barrel. Do you think it's achievable?

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