Oil prices reach an all-time high
In the recent pricing the rate of a barrel of oil has reached an all-time high. The ever increasing demand for oil and depletion of resources has led to a rise of this vital commodity. A barrel of oil in the US initially touched about $103.72 but had settled at the end of floor trading at around $ 101.72. The London Brent crude was down by 69 cents and was sold at $100.21per barrel.
At present the demand for oil and other commodities are high among investors as they fear recession in the US. Initially oil prices fell after the end of the campaign against the Kurdish separatist. As a result of this it slightly relieved the geo-political tension. This is another reason why the oil prices have been drastically rising.
The president of Venezuela, Hugo Chavez predicts that the oil prices would continue to increase and he quoted that everything indicated that the prices would keep on increasing. The official government of Nigeria said that if the prices continue to increase this way the producer such as OPEC would have to reduce their output.
It is feared that maintenance of growth would become difficult according to the Federal Reserve boss Ben Bernanke. He also said that the Federal Reserve’s job encouraging the growth was more difficult because of the inflation in prices during which thus suffered a recession.
This record prices of oil coincides with the flow of the investor’s money into various commodities due to the weak US dollar and the increasing threat of inflation in the US.
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