Robust global economies positively affecting demand have been exerting pressure on oil prices. Strong demand, particularly from China and USA tight supply capacity both in refinery capacity and crude production capacity have pushed oil price sabove the psychological mark of US$60. Runaway prices seem to take a breather, as they pause below US$61. Light sweet crude for delivery in August in New York dipped to about US$60.09 per barrel, while in London the price of Brent North Sea crude oil for delivery in August fell to about US$58.72 per barrel.
However, is this price really an all time high? Apparently No. In the wake of the 1979 Iranian revolution, prices had escalated to about US$80 a barrel at current prices.
So what will curb prices? The answer seems to lie in a slowdown in global demand. Eventually the high prices will erode demand and pull the market lower. It seems that oil prices have a potential to continue heading northwards until definite indications of a slowing in demand or a definite build in crude and product stocks start building again.
30-Jun-05 
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