Oil Prices Skyrocket

Posted by - Admin / April 7th, 2010

The price of oil is a major concern for people all over the world. Not just for financial analysts and wall-street traders, but for gas station owners and anyone who drives a car. The price effects virtually everyone, in fact. This article says the price of oil is buoying, near the highest level its been in a year and a half.

Oil was steady on Wednesday, trading near 18-month highs around $87 after a larger than expected drop in U.S. gasoline stockpiles signaled fuel demand was rebounding with an improving economic outlook.

U.S. crude for May gained 10 cents by 0503 GMT to $86.94 a barrel, 15 cents shy of Tuesday’s intraday peak of $87.09, the highest price since October 2008. London ICE Brent climbed 14 cents to $86.29.

Gasoline inventories in the U.S. fell a larger-than-expected 3 million barrels last week, the industry-funded American Petroleum Institute (API) said on Tuesday.

An 18 month high is nothing to scoff at–but it’s tough to discern whether this is a good or bad thing for the economy as a whole.