Oil prices touched new highs as they spiked past US$64 in New York for the first time on Monday, and exceeded US$63 in London. However, oil prices seem to be cooling off as they settled lower. In New York, the contract for light sweet crude for delivery in September fell by almost a dollar to close at US$63.07 a barrel. In London, the price of Brent North Sea crude oil for delivery in September subsided to US$61.98 a barrel.
Very tight supply-demand balance in the world economy has driven crude oil prices above US$60. High energy prices do pose risks for the US economy, translating into a burden on US families, firms, production costs. So far the US economy has been resilient and has not been slowed by the high energy prices. How much further will oil prices have to go before they take their toll on the leading economy of the world?
10-Aug-05 
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