Up seven cents from a month ago, and up 23 cents from a year ago. Oil prices may be moderating. See this from the AP this morning.
NEW YORK (AP) — The price of oil fell on Monday after the Saudi
oil minister hinted that his country, the world’s biggest oil
producer, may raise supplies to put the brakes on higher oil
prices.
Benchmark crude for March delivery lost $1.36 at $87.75 per barrel
in afternoon trading on the New York Mercantile Exchange. The price
of oil has fallen more than 3 percent since Thursday, when it was
close to $92 a barrel.
Saudi Oil Minister Ali al-Naimi said he expected world oil demand
will increase this year to between 1.5 million and 1.8 million
barrels per day. That’s higher than forecasts from the Energy
Information Administration and the International Energy Agency. JP
Morgan analysts point out that al-Naimi’s prediction of stronger
demand probably means the Saudis are willing to raise
production.
“It would seem more oil is on the way, which will reduce the supply
deficit and will moderate the price gain,” JP Morgan said.
