Traders, Not Political or Supply Concerns, Are Pushing Crude Toward $100

How high can they go? Since 2000, oil prices have quadrupled. At some point we will feel the vulnerability to high oil prices, but so far the western economies have only felt a small impact and inflation remains contained. This will not always be the case and it is coming sooner rather than later.

Crude oil prices have shot up $25 US, to just over $95 per barrel, and this has happened in the last 10 weeks. Usually wars, i.e., Iran and Iraq’s border dispute, will drive up the price of oil, but the latest rise in prices is not linked to any one conflict or to an oil shortage, or the weather conditions in the oil producing regions.

What appears to be driving up the price of crude are the traders and speculators, as these people do not consider what is happening today, but predicting, if you like, on what will happen tomorrow. Add the weakening US dollar, a slowing of the US economy, plus a slump on Wall Street, which leads other world stock markets with daily indications, and there you have it, a reasonable reason to raise the price of crude.

The world consumes an estimated 85.9 million barrels of oil per day. In the US today the price of gasoline is up .16 US cents making it just under $3.00 US a gallon (around .80 Aus cents per litre).

There are a lot of excuses from a lot of different people as to why the price of oil per barrel continues to skyrocket, but all I know is, the price of gasoline (petrol) at the pump is ridiculous. And it is time to stand up and be heard. If you just accept what is being fed to you then you are also responsible for these high prices.