29/05/2010
Oil prices: political instability and pressure of the economic issues
Saudi analyst :Less impact holidays season at this time
A group of special ships by the Coast Guard in the United States while dealing with the oil slick in the Gulf of Mexico on Saturday.
Oil price have touched its highest level in two weeks over 75 dollars recording its first weekly gain in almost a month with the recovery of stock markets and expectations of increased demand for oil.
Oil prices have fallen after early gains but still higher than 6 percent from its level at the weekend after government data that showed a rise in demand for petroleum in the United States the largest consumer of energy in the world.
Dr. Rashid Abanmi an oil and strategic analyst emphasized that political issues which increases the oil prices, with the pressure of the deteriorating economic issues around the world,'' especially in Europe, on the economic growth and oil prices.
A report by the U.S. government last Wednesday showed that the demand for diesel trucks and industry in the United States is rising. The Energy Information Department said in its weekly report that oil demand in the United States jumped nearly 7 percent in the past four weeks.
During trading, oil prices of July contracts rose in the New York Mercantile Exchange up to 75.72 dollars, an increase of 1.17 dollars before falling back to 74.77 dollars per barrel during trading.
In London, Brent crude oil rose up to 21 cents to 74.87 dollars per barrel.
Part from that, U.S Admiral Tad Allen, who supervises on the management of Gulf of Mexico, said yesterday that the flow of oil and gas from the well-stricken in the Gulf of Mexico stopped and used pumping quantities of mud inside, but the real challenge will be by validity continuation of this solution.
The oil group BP said yesterday that the oil slick caused by the platform Deep water Horizon, which sank in the Gulf of Mexico cost about 930 million dollars so far, including the expenses of the surround patch, cleaning, and the amounts paid to U.S. coastal along with compensation and costs of attempts to stop the oil leak.
