Wednesday, October 27, 2010

Oil prices fall towards $100 a barrel

Sept 2, 2008 10:30 am

The spot price for a barrel of oil fell by over 8 dollars a barrel from 115 to 107 in recent trading. Prices were driven downword by the relatively positive news that Hurricaine Gustav has apparently not done too much damage to the extensive oil facilities in and around New Orleans. The less extensive damage than was feared is good news for everyone in the area. President Bush and state Governors and emergency disaster planners deserve congratulations for doing a good job in protecting residents and co-operating to ensure success. The drop in oil prices suggests that the $100 barrel barrer will be next to fall although OPEC might try to prevent this by cutting global supplies. I would still bet on prices dropping below $ 100 in the coming months.

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