Oil Price Soars above $145 per Barrel

Nobody, even OPEC can stop oil price from increasing. To date, oil is at above $145 per barrel. What comes next after this tremendous increase in oil price?

Prices might have raced even higher Thursday were it not for the sharp gain by the dollar against the euro. "The strength in crude oil is amazing given the price of the euro," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

The slumping dollar has been a key driver pushing oil prices up by half this year. Many investors buy commodities such as oil as a hedge against inflation when the greenback weakens, and a falling dollar makes oil less expensive to investors overseas. When the dollar strengthens, traders have less incentive to buy commodities.
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$200 A Barrel Is Possible, Oil Producers Say

Oil price is at above $135 per barrel in early trading today, which escalates tensions and fears over supplies. The price becomes double as last year's price. Meanwhile, oil producers predicted that oil price may end up $200 per barrel this year. how would OPEC react on this issue?

The US has repeatedly called for oil-producing countries to raise output to calm the market but producers blame speculators and the weakness of the dollar for high prices, rather than supply constraints.

Abdullah al-Badri, Opec secretary general, said the cartel saw no problems with the fundamentals of oil supply and demand. "Even if we increase output tomorrow, the prices will not come down."

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Oil Price Scaled At $130/Barrel

What could you expect from the trend in the global oil market? Everybody is expecting nothing aside from the continued increasing oil prices, despite effort to minimize its price. But those efforts seemed to be useless, as the oil price has surged to its peak.

The U.S. House of Representatives approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies, but the White House threatened to veto the measure because it could spur "retaliatory action against American interests in those countries".

Energy analysts say an OPEC decision to raise output could help ease the price rally, which they say has been fueled largely by resilient world energy demand even as the United States economy slows.

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Rising Oil Price Is Hurting Consumers

What would you expect from the oil consumers if its price is no more than the usual? Definitely, they would be infuriated! Costly gas price would mean budget cutting for them.



Despite oil negotiations made by top leaders around the world, still, oil price cannot be stopped from rising. This makes every householder be forced to tighten their budgets, including personal budgets.

The situation could get worse soon. Prices at the pump have been pushed to levels many couldn't conceive of even a year ago, and analysts and the Energy Department are both expecting the cost of gas to rise even further this spring and summer.

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