Oil Watch: 11/12/2007 - 11/17/2007 - Prices, Causes, and Effects

Closing price: $95.10 per barrel (down)
National gas average: $3.10 (up)

Oil down since last week, the first time in a while, but don’t expect $60 or $70 or even $80 anytime soon. Our prediction still stands: $100 oil soon.

Cause(s):
1. Dollar rising\weak dollar (again)
The dollar is still on life support, but it’s doing better. A lower dollar makes oil cheaper in countries that use other currencies.
2. Nigerian output disruptions
Rebels. Again.
3. More oil than expected
Government data showed a surprise 2.8 million build in crude inventories last week

Effect(s):
Gas prices still slowly rising, along with heating oil prices.