Contact Us

Oil Hits $100 Bucks a Barrell

Price Of Oil Nears 70 Dollars A BarrelReuters) – Brent crude topped $100 a barrel for the first time since 2008 on Monday, jumping more than 1 percent on unrest in Egypt and rising demand expectations.

Egyptian President Hosni Mubarak overhauled his government in an attempt to defuse a popular uprising that has raised concerns about oil shipments passing through the Suez Canal or that the unrest could spread to Middle East oil producers.

The surge in Brent, which has climbed from $70 a barrel in August on rising global demand, has also stirred worries in consumer nations that a hike in fuel prices could stall a global economic recovery.

Officials from the Organization of the Petroleum Exporting Countries (OPEC) said there was no shortage of oil in the market and no need to increase production right now.

“The whole situation in the Middle East has got traders very nervous even though crude is still coming through the Suez Canal,” said Mike Zarembski, senior commodities analyst for optionsXpress in Chicago.

“If the trouble spreads to other oil-exporting countries in the region, it could push prices higher.”

Severe cold in parts of the Northern Hemisphere this winter has also underpinned oil’s recent rally. Supportive U.S. Midwest factory activity and firmer consumer spending stoked demand expectations and helped turn crude strongly positive.

 ”Momentum is up. Traders are buying dips on fears that things could escalate further in the Middle East and spread to other countries,” said Tom Bentz, broker at BNP Paribas Commodity Futures Inc in New York.

 U.S. distillates were seen falling for the week to January 28 due to cold weather in the giant U.S. Northeast heating oil market, while an increase in imports was seen boosting U.S. crude stockpiles, according to a Reuters poll of analysts ahead of U.S. inventory data due on Tuesday and Wednesday

More from newstalkkit.com

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://newstalkkit.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on News Talk KIT quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on News Talk KIT quickly by logging in with your Facebook account. It's just as secure, and no password to remember!