Oil price rising again

Oil price rising again

Oil price rising again

In the last ten years the oil price fluctuated a lot. In 1999 during the Asian Financial Crisis doubled by increased oil production of Iraq, the oil price was set at one of the lowest points in history: $17 per barrel.

After that low point the price started to move constantly upwards. In early 2008 the oil price hit $100 and by July, in the same year the oil set a new record high of $147.27 per barrel. The geopolitical aspect consisting in international concern over Iranian missiles tests played a very important role in reaching this high value for a barrel of oil.

After that historic high, the oil price declined and by the end of 2008 the oil being traded at $33.87 a barrel. During 2009 and 2010 the price constantly went up with smaller up and down fluctuations.

The end of the global financial crisis and the economic growth in major countries increased the oil demand that increased the oil price. By the end of 2010 the oil price was up again, a barrel of oil being traded for about $90.

Is expected that the demand for oil to continue and even slowly increase on short term as more economies recover from recession. The recent political crisis that affected North African countries had no major effect on oil rates, but if the political incertitude extends towards the Middle East that might change.

Saudi Arabia, Iran and United Arab Emirates are among the top oil exporters. If the political unrest will extend to these countries that are in the same region, the oil price could be strongly affected and we might see a new record in oil price.

For now the oil price is stable with a slight tendency to increase on the long term. We will have to wait and see if the oil will reach new records or it will keep its constant up trend.

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