Supply Concerns, Refinery Bottlenecks Seen as Reasons for Record Crude Oil Price

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Researched by Industrial Info Resources (Sugar Land, Texas)--The international crude oil price passed $81 per barrel for the first time in 22 years on September 18, 2007. This is the fifth day of a record-setting international crude oil price.

The reason for the spike in oil price is due to the market’s concerns about supply and the U.S. refinery bottlenecks.

As of September 17, 2007, the international oil price had already reached a record high. The New York Mercantile Exchange oil futures’ main contract price shot up to a historical high of $80.7 per barrel, though the day closed with the price sliding slightly down to $80.57. It still was an increase of $1.47 per barrel compared with the day before. It was also the highest trading price and the closing price set for crude oil futures in 22 years.

On September 18, during the operation hours of Asian electronic trading, oil price continued to rise, reaching $81.24 per barrel. Barclays, Goldman Sachs and other financial institutions forecast that in the next a few weeks, the international oil price will hover around $80 per barrel, aiming at a high of $87.5 to $89. There is also speculation that the price will break $90 a barrel.

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