Oil Hits $100 a Barrel for the First Time
The New York Times is reporting that oil prices reached the symbolic level of $100 a barrel for the first time today, a long-awaited milestone in an era of rapidly escalating energy demand.
Crude oil futures for February delivery hit $100 on the New York Mercantile Exchange shortly after noon New York time, before falling back slightly. Oil prices, which had fallen to a low of $50 a barrel at the beginning of 2007, have quadrupled since 2003.
Crude oil futures for February delivery hit $100 on the New York Mercantile Exchange shortly after noon New York time, before falling back slightly. Oil prices, which had fallen to a low of $50 a barrel at the beginning of 2007, have quadrupled since 2003.Futures settled at $99.62, up $3.64 on the day.
The rise in oil prices in recent years has been driven by an unprecedented surge in demand from the United States, China and other Asian and Middle Eastern countries. Booming economies have led to more consumption of oil-derived products like gasoline, jet fuel and diesel. Meanwhile, new oil supplies have struggled to catch up.
Oil markets have become increasingly volatile and unpredictable, with large swings in 2007 that analysts attributed partly to financial speculation, not just market fundamentals. Political tensions in the Middle East, where more than two-thirds of the world’s proven oil reserves are located, have also fueled the rise in prices.
Comments