$170 by the end of the year

iVillage Member
Registered: 05-29-2003
$170 by the end of the year
21
Mon, 06-30-2008 - 8:49am
OPEC Leader Khelil Says Dollar Will Drive Oil to $170 (Update1)

By Ahmed Rouaba


June 28 (Bloomberg) -- OPEC President Chakib Khelil predicted that the price of oil will climb to $170 a barrel before the end of the year, citing the dollar's decline and political conflicts.


``Oil prices are expected to reach $170 as demand for fuel is growing in the U.S. during the summer period and the dollar continues to weaken against the euro,'' Khelil said today in a telephone interview. The leader of the Organization of Petroleum Exporting Countries also serves as Algeria's oil minister.


Political pressure on Iran and the depreciation of the U.S. currency have caused a surge in oil prices, Khelil said. New York- traded crude has more than doubled in a year and touched a record $142.99 a barrel yesterday on the New York Mercantile Exchange.


OPEC ministers generally say that oil output is sufficient, even as Saudi Arabia, the biggest producer, pledged to pump an extra 200,000 barrels a day next month to calm the market. ``The market is completely supplied,'' Venezuelan Oil Minister Rafael Ramirez said yesterday. Libya announced possible production cuts, calling the market oversupplied.


The rising cost of crude is not linked to supply, Khelil said today. ``There is more than enough oil in the market to meet the international demand,'' added the OPEC president, who will take part June 30 in an international energy forum in Madrid.


Prices, which are up 38 percent this quarter, are heading for the biggest quarterly gain since the first three months of 1999, when oil traded between $11 and $17.


Declining Dollar


``The decisions made by the U.S. Federal Reserve and the European Central Bank helped the devaluation of the dollar, which pushed up oil prices,'' Khelil said.


Oil may extend gains if the ECB boosts rates on July 3, further weakening the U.S. currency. The dollar has declined 15 percent against the euro in 12 months.


ECB President Jean-Claude Trichet reiterated June 25 that policy makers may increase the main refinancing rate by a quarter-percentage point next month to contain inflation. The Federal Reserve left the benchmark U.S. rate at 2 percent on June 25. On Sept. 18 the Fed began cutting rates to bolster an economy already reeling from the credit crisis


http://www.bloomberg.com/apps/news?pid=20601087&sid=aq_sRQH22HdY&refer=worldwide

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iVillage Member
Registered: 03-19-2003
Mon, 06-30-2008 - 9:14pm
A lot of people SAY things....but are they changing anything.
iVillage Member
Registered: 08-10-2005
Mon, 06-30-2008 - 9:42pm
Not everybody LIVES near public transportation. I live in the suburbs. I don't live anywhere near any public transportation. I think people are driving less, statistics are saying so, people are CANCELLING trips. Don't you listen to the TV if it isn't painting a rosy picture?
iVillage Member
Registered: 03-26-2003
Mon, 06-30-2008 - 11:55pm

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Actually I've heard the ridership is up on the MBTA (Boston's public transportation system).

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 03-19-2003
Tue, 07-01-2008 - 9:07am
Actually I DO live in the suburbs without public transportation.
iVillage Member
Registered: 03-19-2003
Tue, 07-01-2008 - 9:10am
They may be up some...but not anywhere you would expect if this is as bad as people are complaining about.
iVillage Member
Registered: 03-26-2003
Tue, 07-01-2008 - 9:38am

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I remember that time as well.

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 07-17-2007
Tue, 07-01-2008 - 11:17am
In the DC area there have been stories on how Metro ridership is climbing steadily and van/car pools are growing like wildfire. So, I do think that people are changing their ways. I also hear at the pool people suing the commuter car on the weekends now instead of the minvan or SUV.
iVillage Member
Registered: 08-10-2005
Tue, 07-01-2008 - 11:51am

I don't know why anyone wouldn't use the Metro in DC. It is so effecient, and not a bad ride at all to get around town. Parking in DC is a nightmare.

iVillage Member
Registered: 07-17-2007
Tue, 07-01-2008 - 6:42pm
Actually service has deteriorated some because they haven't been able to do the maintenance they need to keep it excellent. It is in woeful need of a reliable funding source.
iVillage Member
Registered: 06-23-2008
Fri, 07-04-2008 - 9:53pm
The dollar is falling too. If our dollar continues to fall the oil producers will go to the