Many in the business world believe this is just the starting of what will be an overwhelming shortage in crude oil in years to come. That as they say,"Dreaded times are yet to come". Oil prices have rosen to new levels, to levels which could leave a big shortage in crude oil. Oil price this wednesday reached $110/barrel.
In late morning trade, New York's main contract, light sweet crude for April delivery, traded briefly at 108.90 dollars a barrel, up 15 cents from its record closing high of 108.75 dollars on Tuesday.
At 12:00 pm (0400 GMT), the contract has eased to 108.64 dollars.
New York prices spiked to a new all-time high of 109.72 dollars Tuesday, putting it to within touching distance of the 110-dollar mark.
London's Brent North Sea crude for April delivery gained three cents to 105.28 dollars a barrel from its record close of 105.25. The contract traded at a new high of 105.82 on Tuesday.
"The oil market is really soaring to unprecedented heights primarily due to funds and the speculators putting money into oil and other commodities," said Victor Shum, an analyst with Purvin and Gertz energy consultancy in Singapore.
"Money always looks for better returns," he said, adding investors who are flush with cash see commodities offering "a hedge against the weakening dollar and inflation."
At 12:00 pm (0400 GMT), the contract has eased to 108.64 dollars.
New York prices spiked to a new all-time high of 109.72 dollars Tuesday, putting it to within touching distance of the 110-dollar mark.
London's Brent North Sea crude for April delivery gained three cents to 105.28 dollars a barrel from its record close of 105.25. The contract traded at a new high of 105.82 on Tuesday.
"The oil market is really soaring to unprecedented heights primarily due to funds and the speculators putting money into oil and other commodities," said Victor Shum, an analyst with Purvin and Gertz energy consultancy in Singapore.
"Money always looks for better returns," he said, adding investors who are flush with cash see commodities offering "a hedge against the weakening dollar and inflation."
So, i urge all people to conserve energy, else we may be left extinct of crude oil.
