Saturday, November 10, 2007

Oil Watch: 11/05/2007 - 11/10/2007 Prices, Causes and Effects

Closing price: $96.32 per barrel.
National gas average: $3.09

Getting closer to 100… But options on December crude oil futures expire Tuesday, with investors holding many $100 ‘call options’ – which allow traders to buy the underlying futures contract at a predetermined price and date – which could cause prices to rise even higher, because holders of $100 call options will enjoy a payout if prices hit $100.

1. Weak dollar (again)
A lower dollar makes oil cheaper in countries that use other currencies.
2. European output disruptions
9 oil and gas platforms were shut down because of a storm.
3. Shortage fears
Investors fear winter shortages

Gas prices slowly rising, along with heating oil prices. The good news: energy consumption is also on a downward trend.