Oil In Crisis Just One Cent Shy Of All Time Record

By Stewart Douglas

Oil prices have climbed to a fraction off the record high today, leading to further speculation as to the future of oil production.

The price of oil in New York closed today a mere cent off its all time high at $77.02 a barrel, reflecting a significant increase in the cost of energy. 

This could ultimately drive inflation over the coming months, to the detriment of the world economy.

And with consistent demand from the East, trading like today is likely to further increase the price of crude oil.

After a week of good news for the future of oil production, today’s activity has come as a surprise, yet many expect prices to continue to rise over the coming week. 

The impact of increasing oil prices could lead to inflation, a factor that is concerning many of the world’s major economies.

The news is especially concerning, given the downturn in share prices over the course of this week.

Experts are predicting that the price of oil could even rise beyond $100 a barrel if OPEC doesn’t immediately step in and increase supply.

Increasing oil costs not only impact on inflation, but can also minimise energy supply, with disastrous effect.

It would appear that market speculation has driven the recent spate of price rises, given a particularly good week as far as oil supply and demand goes. 

Naturally, the longer OPEC holds off increasing supply, the greater the price of oil is likely to become with steadily increasing demand, in conjunction with speculative purchases like those seen today.

OPEC meet later on this year to discuss the future of oil production, with signs from within the cartel and major oil producing nation Iran suggesting a significant increase in crude oil supply may be imminent.