According to Yahoo!News:
LONDON – Oil rose nearly $2 to around $117 a barrel on Tuesday, as concerns grew about possible disruption to U.S. offshore oil and gas output from a strengthening Hurricane Gustav.
The U.S. National Hurricane Center said Gustav, a category one hurricane, had strengthened slightly in the central Caribbean as it churned toward southwestern Haiti.
Weather models showed it either heading in a westerly direction toward Mexico’s Yucatan Peninsula or steering northwest and moving into the central Gulf of Mexico by early Sunday, to potentially disrupt offshore oil and gas production.
Read the full article at Yahoo!News:
- Obviously the oil prices went up slightly due to “risk” of hurricane Gustav strengthening but we must also examine effects of the Beijing Olympic as well.
According to my friend’s analysis on the fall of commodities was due to the shut down of China oil consumption to reduce pollution for reducing the effects on the Olympics athletes.
A quick survey to a local China born PRC and I found out that China had restrict vehicles on the road by “odd” & “even” license plate alternate days usage method during the Beijing Olympic. This drastically reduced the demand for oil for this short period of time.
Now with the Olympics over, we can expect a technical rebound unless China’s non-pollution rules remains unchanged.
If the rules remains then it will be bad news for China’s economic growth and probably will have devastating effects on China’s manufacturing industry.
There are also lingering political tension in oil producing countries like Iran and Russia that potentially spiral out of control. (Peace will be essential for sustainability too…support no war!)
Oil Went up from lowest of US$112.36 to highest at US$117.89 and now consolidating around US$115.79 per barrel.
Seems like my previous old prediction that oil price to reach $150 per barrel by end August will be pretty hard to materialize unfortunately. Well, this may be good news for the common folks that does not invest in oil but are worried about inflation figures.
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