"Crude prices have spiked more than 20 percent in the last three
weeks. The jump is unusual because this time of year is known as a
shoulder season – marked by slack demand – between the summer driving
and winter heating months.
Crude is now at or near all-time
highs, even adjusted for inflation. The last time oil was this high was
the early 1980s, when it rose to $93 to $101 a barrel, depending on the
inflation calculation used and the oil contract cited.
between Turkey and the Kurds in oil-rich northern Iraq, reports showing
demand outpacing supply in the fourth quarter, a falling dollar and
lots of speculative investing have all been cited as reasons for the
Crude oil prices have surged nearly five-fold since
trading below $20 a barrel in 2002. Analysts say surging global demand
combined with limited new supply is the main underlying factor.
The surge in prices has also attracted lots of speculative investment money, further driving prices higher."
Chart courtesy of Barchart
Oil hits another record above $97
CNNMoney.com November 6 2007: 12:05 PM EST