International oil prices closed above US$100 for the first time

(Press Release Online 2008-2-20) Despite the endless rhetoric and evidence that the US economic growth is slowing down, and despite Bush’s emphasis on economic recession It will reduce the demand for crude oil, and the international oil price still shot up to US$100 on Tuesday.

At 03:31 Beijing time on the 20th, the price of March crude oil futures in New York reached US$100. This is the second time that international oil prices have reached a high of US$100 after the oil price hit US$100.09 on January 3. According to data from the New York Stock Exchange, the March contract price reached a high of $100.10, which is higher than the last record of $100.09. The March contract finally closed at $100.01, which was the first time crude oil futures prices closed above $100.

Analysts believe that there are multiple factors for the surge in oil prices. A weak U.S. dollar, an explosion at a Texas refinery, possible production cuts by OPEC, and tensions between Venezuela and the United States all played an important role.

OPEC will hold a meeting in Vienna on March 5. Some members, including Iran, have asked OPEC to cut production. However, Shokri Ghanem, chairman of the Libyan National Oil Company, said on Tuesday that it would be difficult for OPEC to cut production as oil prices rose again to record highs.

An explosion occurred at an oil refinery in Texas, USA, on the morning of the 18th, injuring at least four people. The refinery where the accident occurred is nearly 300 miles west of Dallas. The refinery has 170 employees per day and has a daily production capacity of 7,000 barrels of oil. Sources said the explosion could shut down the refinery for two months.

At present, the international oil market is also very concerned about the supply of Venezuelan crude oil. A few days ago, Venezuelan President Chavez said that Venezuela would not suspend crude oil supplies to the United States unless the United States "attacks Venezuela or tries to harm us." Petroleum Venezuela issued a statement on the 12th announcing that the company had decided to suspend business dealings with Exxon Mobil.

In addition, the situation in Nigeria, Africa's largest oil producer, is also a major concern for investors. Militants currently attacking the country's oil infrastructure are asking U.S. President George W. Bush to mediate in Nigeria's long-running crisis, the Associated Press reported. Affected by the conflict, Nigeria's crude oil production has dropped by 20%.