Oil hits $US100 per barrel for the first time in history

For the first time in history, oil has has breached the $US100 per barrel mark. At noon on January 2nd, crude oil prices briefly breached the $US100 a barrel mark at the New York Mercantile Exchange before dropping back a fraction.

It seems that rising demand is once again the culprit, with demand in the US and China increasing. Rapidly emerging countries such as India who are at the courtship stage in their burgeoning love affair with the car are also doing their bit to ensure that demand exceeds supply.

The price of 98 Octane premium in Melbourne today was over $1.60 a litre in some areas. It seems like only yesterday that the $1.00 per litre price point was passed and now we appear to be staring down the barrel at $2.00 a litre in the not to distant future. Interestingly, oil was at it’s most expensive back in 1980 when it was selling for the equivalent of $102, adjusted for inflation. The more things change the more they stay the same...

[Source: leftlanenews]