28 May 2009

Oil Prices Hit Over $60

Exciting news for the commodity futures market - oil prices have reached six-month highs, at over $60 a barrel.

US light crude oil was up to $63.45 a barrel while Brent crude rose to $62.50 by close of business on Wednesday. Both were up by over $1. The news has meant that Saudi Arabia's oil minister has predicted prices will reach close to $80 by the end of the year.

Opec, the main oil cartel made up of 12 member countries, is due to meet in Austria. Since last September, they have cut output levels three times, which reduced the amount of barrels per day in circulation. It had been said that they would call for further cuts in Austria, but this may now not be necessary any longer...

Of course there are those who say things aren't as great as they seem - there are even those who predict a fall in oil prices by the end of the year, sharper than the early 1980s.

Who's right, who's wrong - who knows! But the return to confidence in the oil sector is surely something to think about.

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