oil price increases of 2005

The price of light, sweet crude oil on NYMEX has been above $50/barrel since 5th March 2005. On March 16, 2005, the price surpassed the October 2004 high of $55.17 closing at $56.46. On March 18, the price beat this rising to $57.60. This made the price 50% higher than its year-ago level. It should be noted that the $50-$60 range is still well below the all-time inflation-adjusted high seen in 1980 of $90. Reasons for these price increases vary depending on the analyst. One is the fact that winter in the US was colder than usual, although this became less and less relevant as year progressed towards spring. Another reason is that world demand also continues to increase, helped by the stellar growth of India and China. Finally, the dollar continues to slump against the euro. Oil is traded in dollars, and so in order for OPEC to maintain buying power in Europe, oil prices must increase.

Oil Price Increases Of 2005

See also