Tuesday, March 18, 2008
Why Oil is at its all time High
Oil at a record high
A global energy crisis looms large, with crude oil prices hovering over the $111.80-per-barrel mark, which it hit on March 17. It later fell to $105.11. With international crude oil prices shooting through the roof, the basket of crude oil that Indian refiners buy too recorded a record high of $101.2 per barrel.
On the backdrop of a global meltdown, the rise of oil prices is a cause for concern. The spiraling oil prices will derail a booming economy if not checked.
So why are oil prices soaring like crazy? Will there be some respite in the near future? The answers are disturbing. . .
The fall in the dollar rates is just one of the factors that has led to this astronomical rise in oil prices. A weaker American currency tends to increase the demand for dollar-denominated oil as it becomes cheaper for buyers using stronger currencies.
Oil prices are also heading higher because investors are seeking a safe investment for their cash amid fears of rising inflation and a US recession.
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