Oil Prices Rise
Despite the recent decline in demand due to slowing economies, oil prices are being driven up:
Yesterday, crude reached a five-week high because of the conflict between Israel and Hamas, Russia’s gas dispute with Ukraine, and signs that OPEC members are enacting supply cuts. It later fell as manufacturing data indicated the U.S. recession is deepening.
Crude briefly surged to $49.09 a barrel today as the International Energy Agency said it is “very concerned” about the escalation of the gas dispute between Russia and Ukraine and urged an immediate restart to European supplies.
Iran, the Middle East’s second largest oil exporter, will trim exports to two refiners in Asia in February, officials from the companies said today, to conform with OPEC’s Dec. 17 decision to curb supplies. Other members including Kuwait, Qatar, Libya and the United Arab Emirates have given similar notices.
For some reason oil prices seem to be on my mind today. First thing this morning I wrote a post on stimulus packages, asphalt, the price of oil, and unforeseen secondary effects over at The Glittering Eye.