29-02-2008
Oil prices rebound to fresh highs
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The price of oil has increased again during early morning (February 29th) trading.
With the opening of some international markets, the cost of US light crude oil in East Asia has increased to $102.80 (£51.63) per barrel, a rise of 21 cents. Today's increase pushes the price of the commodity above its 1980 high of $102.59 per barrel - a figure derived after inflation adjustments.
Current demand levels and the weakness of the US dollar are believed to be behind the spikes in price, reports the BBC.
"The fresh record prices coincides with the flow of investor money into commodities, due to the weak US dollar and the increasing threats of inflation in the US," said Victor Shum, the senior principal of energy consultancy firm Purvin and Gertz. "A price bubble is emerging and the market faces a risk that crude oil pricing could also collapse as fast as it rose."
At the close of trading yesterday, US light crude oil prices were priced at $102.59 per barrel.