Thursday, May 22, 2008
Oil prices at record levels
New record oil price is increase of 34% in this year, and by investment bank Goldman Sachs estimation in second half of this year average oil price will be around $141 for barrel. Same bank estimates that oil price will break $200 for barrel level in year 2010. Last year’s average oil price was $64.20 with price of $55.43 in May. Just for information: average oil price in year 2002 was $26.61.
New factor in oil price increase definitely are rumors about US – Iran war at the beginning of the next year. An Israeli press report that US President George W. Bush intends to launch a military attack on Iran before he leaves office - Tuesdays Jerusalem Post, cited a report on Israeli Army Radio, quoting Israeli officials who had met with Bush and his delegation during their visit to Israel last week. The report also cited the US official as stating that the hesitancy of Defense Secretary Robert Gates and Secretary of State Condoleezza Rice had delayed a decision on military action against Iran.
Weak American dollar is currently the main reason for increasing oil prices, but expected oil shortage and rumors about war with Iran are also big factors in oil prices. Some analysts also believe that China may need to import more fuel to make up for the disruption of other supplies after last week's earthquake.