Crude oil prices shoot closer to $100, oil traders pile in

11 January 2011 11 January 2011

BonTrade

The Kuwaiti authorities forecast that crude oil prices will exceed $100 dollars a barrel in the next few weeks, based on speculative and bullish behaviour of oil traders, who may well drive another bubble in the oil futures market.

Oil Prices Closer to $100 Mark

In last two hours, Brent oil prices have risen around $1.50 a barrel, to $96.42 a barrel, on the ICE Futures Exchange, a new 2011 high. Meanwhile, the US dollar remained firm in currency market trading.

Kuwait Forecasts $100 Plus Oil Prices

Kuwaiti experts forecast that there is a need to boost production to avoid such a price shock. A sufficient amount of oil will calm markets, and the rise in oil price up to $100 dollars a barrel will help to restore the world economy.

However, other analysts disagree with them. The IEA believes that a rise in oil prices will hamper economic recovery all around the world.

The Russian Point of View – Oil Prices

“We must take measures to maintain quite stable oil prices. Oil prices will fluctuate, of course, but they should be around $80 dollars a barrel. I believe that this oil price will satisfy the other oil producers and the oil consumers as well.” commented Gennady Shmal, the president of the Union of Oil and Gas Producers of Russia.

Oil Prices and Petrol Costs

Meanwhile, the cost of filling up vehicles at stations is increasing with oil prices. In the UK, the price of petrol could reach £6.00 a gallon (around $9.00 per gallon) for the first time ever, as the price of oil moves back closer to the $100 mark.