Oil prices increasing
Tuesday, November 29, 2011 at 11:51 PM by Bill Baker, J.D.
Editor and Publisher, The San Bruno Beacon
Middle East turmoil, eurozone crisis, U.S. economic decline, China slowdown. Oil prices rising again.
After hanging around in the sub $80/bbl neighborhood during October 2011, oil prices have recently been moving back up to the $100/bbl mark.
The reasons for the rise in the price of oil are numerous. A few of the reasons include, but are not limited to:
1). Oil embargo on tap. A November 29, 2011 Financial Times story by Javier Blas titled: Oil Prices surge ahead of EU embargo talks observed that oil prices are surging:
".....as traders and refiners take positions ahead of a meeting of EU foreign minister that is due to discuss a possible oil embargo against Tehran."
2). Middle East turmoil. Other than Iran, supply disruptions could occur in other OPEC Member countries such as Libya, Iraq, Kuwait and Saudi Arabia.
3). Further quantitative easing by the U.S. Federal Reserve System and its European counterparts will put more money into the U.S, and European economies, increasing demand for and the price of oil.
4). Supplies of oil to China are increasing and China is making moves to increase its share of Middle East oil.
