At the New York Mercantile Exchange oil prices settled at US$67.32 per barrel. Led by concerns of a storm expected to affect and probably shutdown production sites in the Gulf of Mexico and US government report that showed a decline in the nation's gasoline supply, oil prices have spiked.
Predictions that crude prices will hover above US$60 for this year and beyond will be proved right in all likelihood. Even at such steep price levels, demand is not waning, with global demand still averaging near 84 million bpd. As buyers are buying not to consume, but to stock reserves incase of a shortage in the future, the possibility of demand being restricted this year seems very remote. On an inflation-adjusted basis, oil prices would need to hit about $90 a barrel to match the highs of 25 years ago.
26-Aug-05 
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