Oil Watch: 10/15/2007 - 10/20/2007 - Prices, Causes, and Effects

This week we begin our weekly series, Oil Watch. We’ll discuss prices, causes, and effects.

Closing price: $88.60 per barrel.

Oil prices skyrocketed this week to over $90 a barrel, before coming down slightly. Meanwhile, gas prices have stayed relatively steady.

Cause(s):
1. Weak dollar
A lower dollar makes oil cheaper in countries that use other currencies.
2. Turkey-Iraq tensions
Iraq is still the 14th largest oil producer.

Effect(s):
Stock market rattled