Price of crude oil reached
$67 in today’s trading at the
New York Mercantile Exchange (NYMEX). Primary reason for the spike continues to be supply and demand.
A number of production stoppage and geo-political worries in Middle East are the main culprits for this surge in prices.
Fires at BP’s giant refinery in Texas, and the loss of capacity at ConocoPhillips refinery in Illinois are some of the main contributors to analysts worrisome.
Latest economic data shows an increase in U.S. retail economy ironically with biggest gain coming from auto sales due to sales incentives such as the ‘employee discount’ programs.
Not helping the situation is Iran’s resumption of its nuclear program and continuing threats in Saudi Arabia against United State and other foreigners by Al-Queda cells.
At the pumps gas prices will probably reach higher than their current average of $3 by early next week before falling back to a reasonable level.
In the meantime Americans will continue to drive bigger cars, ignore the Kyoto treaty on environmental issues, and spend more energy to continue our dependence on fossil fuel.
Ramin Talaie
New York City
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