Crude Oil Prices Again Increase

The cost of crude oil on open commodity markets has fallen slightly from the record highs recently experienced, despite the fact that it remains fairly high by comparison to desirable market standards.

The news comes in the wake of OPEC’s surprise decision to step up output of crude oil by as much as half a million barrels a day on top of existing quotas, as a measure to stabilise world oil prices and hopefully settle world economies.

With rising demand from emerging eastern economies and dwindling crude oil stockpiles, oil prices have shot up over the last few months, raising the cost of fuel and energy for businesses and consumers.

The price of oil currently rests at $79.77 a barrel, just shy of yesterday’s $80.18 high, which saw the price of oil rise through the landmark $80 mark for the first time in history. However, on an adjusted inflation scale, prices are still beyond what was effectively $90 a barrel in late 1979. Overall, the price of oil has risen by as much as 30% over this year, four times higher than prices five years ago.

However, supply is still of concern on the world market with US stockpiles dwindling and severe weather patterns likely to affect oil output in the Americas over the coming months.

And with demand likely to continue to increase as both China and India maintain strong economic growth, it looks likely that prices will remain high until the supply situation actively changes.

OPEC are set to commence the upgrade in output as of the first of November this year, which should see markets buoyed as a result, as well as seeing oil prices fall at that time. The influential cartel will implement the measure in order to restore certainty to oil prices worldwide, which many analysts expect to happen upon increased production.

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