Oil hits new highs June 16th, 2008
The cost of oil eased back from its New York trading session high of $139.89 to end the session at $138.86. This despite the news that Saudi Arabia has agreed to increase its oil output by 200,000 barrels per day. This takes the increase to 550,000 per day and is the highest output figure from the Saudi’s since August 1981.
The price of oil dipped temporarily last week on the news from Saudi Arabia, but in this highly volatile market where speculators continue to bid up the price, there seems little chance that the price will fall for a period of time. Many analysts are still predicting a price of $200 a barrel over the next 12 to 18 months.
