Oil prices hit record $98

Analysts say price of crude oil on the way to breaking $100 a barrel.

    Oil prices are expected to reach
    $100 a barrel [EPA]

    Manouchehr Takin, a London energies analyst, told Al Jazeera on Wednesday: "The fundamental level of supply and demand has changed.

     

    "Usually at this time of year there is an increase in inventories [but] this year the amount stored … is lower".

     

    Supply crisis

     

    The surge brings oil close to the peak of more than $101 hit in 1980 when war between OPEC producers Iran and Iraq led to an oil supply crisis.

     

    One of the countries benefiting most from the price rise is Venezuela, a country whose president, Hugo Chavez, is an outspoken critic of the US.

     

    Caracas has announced it is ready to provide a major increase in oil production under a deal it has struck with the Chinese government ... pledging half-a-million barrels a day to a nation whose demand is now approaching that of the US.

     

    Current demand - fuelled by rapid economic growth in China and a steady increase from the US - has been a major driver behind oil prices more-than-quadrupling since 2002.

     

    China is expected to overtake the United States as the world's top energy consumer soon after 2010, the International Energy Agency (IEA) said on Wednesday.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Death from above: Every Saudi coalition air raid on Yemen

    Death from above: Every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    How different voting systems work around the world

    How different voting systems work around the world

    Nearly two billion voters in 52 countries around the world will head to the polls this year to elect their leaders.