Oil Watch: 10/22/2007 - 10/27/2007 - Prices, Causes, and Effects

Closing price: $91.86 per barrel.

After an all-time high of $92.22, oil settled down $0.36 to $91.86. This is the $90 a barrel analysts have been predicting; where’s the skyrocketing gas prices? Gas remains constant at around $2.80 nationally.

Cause(s):
1. Weak dollar (again)
A lower dollar makes oil cheaper in countries that use other currencies.
2. Nigerian output disruptions
A rebel attack struck an oil rig.
3. Political tensions in the Middle East.
Investors fear new Iranian sanctions could disrupt production in the important exporter, while Turkey still has thousands of troops amassed on Iraq’s doorstep.

Effect(s):
Not much… Gas prices have remained relatively constant, giving consumers no reason to worry until winter comes around and heating oil is needed.