New records in oil price: $ 52 for one barrel, increase expected
Regional, Economics, 10/7/2004

Oil prices continued increasing in world markets and the price of one oil barrel reached $ 52 in new York for the first time amid fears the investors have for the approaching winter and a reduction in the American storage of intermediate oil products especially heating fuels.

Meantime, storage of intermediate products like diesel and heating fuels reduced at 2.1 million barrels to reach 123.4 million by the beginning of the current month.

The American administration also said that the return of oil production from the Gulf of Mexico to normal levels will take a three months period because of the losses inflected by Hurricane Ivan in the mid of September.

On the other hand, and despite Saudi Arabia's commitment to increase its oil production to 11 million barrels, observers expect the continued increase in oil price to reach $ 60.

The oil price increase did not limit demands for oil, rather the American demands for oil increased at 3% annually to reach 19.96 million barrels daily, according to government data.

Thereby oil prices increased by 60% as from the beginning of the year because of fears in the shortage of supplies in light of the deteriorated security conditions in Iraq and the threats by the oil workers in Nigeria to organize a general strike next Monday if the government will not start negotiations over the wage increases with those workers.

Previous Stories:
  Countries commit to economic progress in Middle East/North Africa   (10/4/2004)
  links of African rail way   (10/4/2004)
  IMF expects weak growth in the Middle East   (10/2/2004)
  Oil price exceeds $ 50 for one barrel   (10/2/2004)

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