The oil market seems to be in a very unstable situation as concerns about rising demand and potential supply disruptions overshadow improving crude inventories. Prices are hovering around record highs of US$ 58. Prices climbed as high as US$58.28, topping the previous intraday record of $57.70 a barrel reached Friday. In London, Brent crude futures fell to US$56.23 a barrel on the International Petroleum Exchange.
This spike can be attributed to a spectrum of concerns, including limited global supply, booming demand from China, growing demand for gasoline from USA, the weakness of the dollar against other currencies as well as increased speculation by hedge funds. Few analysts feel that the market is too focused on "what-ifs" and does not accurately reflect the fundamentals of supply and demand.
05-Apr-05 
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