World oil prices crept back near the level of USD94 per barrel in trading today in Asia after a number of industry experts estimate that high fuel prices could undermine world economic growth.
As quoted from The Associated Press (AP), Tuesday (06/21/2011), the world benchmark oil price for July delivery rose 65 cents to USD93, 91 per barrel in electronic trading on the New York Mercantile Exchange (Nymex). This figure is up 25 cents compared to the previous day’s close of USD93, 26 per barrel.
Meanwhile, London Brent crude for August delivery rose 15 cents to USD111, 84 per barrel on the ICE Futures Exchange.
“Crude oil prices are high may send the global economy back into recession,” said Chief Economist Fatih Birol International Energy Agendy.
Even Bihol alarming events in 2008 can be repeated. July 2008 oil prices rose to USD147 per barrel that undermined investor confidence. But then glide up to USD33 per barrel in December 2008.
Meeting zone finance ministers of Europe have not found an agreement to provide additional rescue loan to Greece.
“The oil market will only see a big impact if the crisis spreads to major countries in Europe. While the possibilities that could result from the Greeks to the price of oil is through the exchange rate of euro against the U.S. dollar,” said JP Morgan report.
Oil prices tend to rise when the dollar fall because it makes commodities like crude oil cheaper for investors with currencies other than dollars, and it works in reverse. Today the euro exchange rate was observed at 1.4346 per USD compared to yesterday which is only 1.4309 per USD.
In other Nymex trading in the contracts in July, heating oil fell 0.5 cents to $ 2, 93 per gallon, while gasoline fell 0.2 cents to $ 2, 91 per gallon. Natural gas futures fell 0.8 cents to $ 4, 31 per 1,000 cubic feet.
— Septian John