Oil Prices Keep Raising $100 a Barrel Next Stop

Oil prices rose on Tuesday as OPEC raised the outlook for the amount of crude it will need to pump this year to keep supply and demand in balance. Which I am still not sure if that is good that OPEC realizes it and they will produce more or bad because they will say oil is worth over $100 a barrel

The 12-member Organization of the Petroleum Exporting Countries said in its monthly market report that world oil demand will grow faster than previously thought this year.

The price of oil is inching back closer to the $100 a barrel mark while diesel fuel prices, rising for the fourth straight week, hit their highest level since the latter half of October. As this is all going on, if it wasn’t for the President’s State of The Union address tonight $100 crude oil is all most media outlets would be talking about.

Crude oil gained $1.31 per barrel Monday in New York trading, closed on Tuesday at $97.49 as the Euro strengthened against the dollar, making it a more attractive buy for foreign investors.

Oil markets also focused on weekly inventory data in the United States, the world’s top oil consumer. U.S. commercial crude oil stockpiles are expected to have risen by 2.9 million barrels last week, a preliminary Reuters poll showed on Monday.

The press will focus on $100 a barrel oil. They almost cheer for it, like something magical is going to happen.

No! No, you’re not going to Disney World you’re going to higher gas prices land and diesel fuel price hell. As a matter of fact if the cost of gas prices and diesel fuel prices continue to go higher a lot of people who had plans to go to Disney World might cancel them because they can’t afford it anymore.

So why, why does the media hype $100 crude oil prices. I guess that they don’t mind pulling out their fuel card more often or perhaps they don’t like a good deal and enjoy fuel savings, they would rather be clubbed over the head.

I am not sure. I am sure that it will hurt all consumers as well as transportation companies with their diesel fuel prices. With hope this will be just a small set back to most companies fleet management and fuel management programs.

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Sokolis