Is $100 a barrel oil here to stay?Is $100-a-barrel oil here to stay? Brace yourselves, drivers. It's going to be a very expensive ride. The price of oil topped $130 a barrel this morning on the world market. Prices then ticked up again following release of a weekly U.S. Department of Energy report, which found that national oil and gasoline supplies were lower than expected last week.
At the time of this writing, the New York Mercantile Exchange listed the price of crude oil at $133.58 per barrel.
Contributing to the record price: the weak U.S. dollar, greater demand for diesel fuel following last week's devastating earthquake in China as well as increased spending on gasoline by U.S. drivers, according to Thomson Financial News. On Friday, Saudi Arabian officials rejected President Bush's plea for increased oil production on grounds that the Organization of the Petroleum Exporting Countries (OPEC), the oil-producer cartel of which the country is a member, had already boosted production earlier this month and that speculation by investors was driving the surge in oil prices, up more than 30 percent since the start of the year. More>>>
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