Crude oil prices increase only slightly despite cessation of oil drilling in Gulf of Mexico

September 4th, 2008 - 3:23 pm ICT by Amrit Rashmisrisethi  

Crude oil prices on the world market decreased slightly last night (September 3) due to appreciation of the US dollar currency and less fuel demands.

Despite the cessation of virtually all oil drilling in the Gulf of Mexico following torrential storms and winds from the nearby Hurricane Gustav, crude oil prices on the New York Mercantile Exchange closed at 109.35 dollars per barrel, down 36 cents per barrel, while London Brent crude oil price closed at 108.06 dollars per barrel, down 28 cents.

Analysts believe that the world oil market is currently unable to maintain the upward movement of oil prices. 98 percent of oil drilling and 92 percent of natural gas production was shut down in the Gulf of Mexico, yet oil prices remained level, leading analysts to conclude that the oil market was influenced more greatly by oil demand and not oil supply.

Source : National News Bureau, Public Relations Department of Thailand

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