Those amazing traders in oil, their spending: it goes downdity down, and then uppity up.
Oil climbed again yesterday to $56.59. It’s now $6 up on the price it fell to just over a week ago.
Oil had fallen to the lowest level in over 20 months, but now it’s close to the levels seen last Autumn before the post Christmas slide.
The recent climb in the price of oil was kicked off when George W talked about buying more oil to up the US strategic oil reserves - and then the temperatures fell.
Just like the Brits, the Americans had been enjoying a mild winter, and - just like the Brits - no doubt many said: “if this is global warming - bring it on.”
But then temperatures started to fall, the heating was turned up, and with it went the price of the black stuff.
All eyes now turn to OPEC. It had been planning to cut oil production, but maybe the rising price will change its mind.
With the price now in the mid 50 dollars a barrel, it’s a lot lower than the levels seen last summer when it went within a couple of bucks of $80.
On the other hand, not so long ago it was half the current price - even as recently as June 04, when the price of oil first started to hit the headlines, it was just $37 a barrel.
Comments
Trackbacks