Crude oil seen touching $100 a barrel

29 Dec 2010

1

With the Oil Producing and Exporting Countries (OPEC) backing an even high price for crude oil, prices are expected to reach $100 a barrel soon.

Crude prices on the market, however, fell from a near 26-month high on speculation that US inventories will climb in January as fuel demand drops in the world's biggest oil-consuming county.

Crude futures slipped around 0.8 per cent after reports of an unexpected fall in US consumer confidence. US oil stocks, however, is expected to show a fall as refiners delay delivery until 2011 to reduce tax bills.

February delivery US sweet light crude futures traded at $90.97 a barrel in early trading in the Globex electronic session on the New York Mercantile Exchange, down $0.03 from the previous session. February Brent crude on London's ICE Futures exchange fell $0.14 to $93.71 a barrel.

Crude prices have been ruling above $91 a barrel for the past few days and reports quoted Kuwaiti oil minister as saying that countries can afford to buy oil at $100 a barrel.

OPEC also seems to be sticking to its decision to keep production at 4.2 million barrels a day. While the decision, taken at its conference in Oran, Algeria in 2008, helped stabilise oil prices, things have changed now and the current need is for cheaper oil that would keep both growth and investment going steadily.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more