In early trading on 5 June, the price of West Texas Intermediate oil fell back to $121.61 on the New York Mercantile Exchange, the lowest price since 15 May and a drop of almost 10 per cent since the all-time record of $135.09 set on 22 May.
It later rebounded to $123.88 in late morning trading, after the dollar dropped against the euro following a speech by Jean-Claude Trichet, president of the the European Central Bank, in which he said that European interest rates were likely to rise next month. An explosion at a Kuwait industrial park housing a major refinery also added to price pressures.
Investment bank Barclays Capital notes that oil prices are likely to remain in the $110-130 range for a while, as the market is still assessing supply and demand responses to the latest spike.
You might also like...
Algeria signs oil deal with Swedish company
19 April 2024
Masdar and Etihad plan pumped hydro project
19 April 2024
Ewec signs Ajban solar PV contract
19 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.