prices leapt to a new record above USD 123 a barrel. Prices surged after a report showed that US worker productivity has accelerated, signaling stronger economic growth and an increase in energy demand. Oil almost doubled in the past year and may rise further if the economy improves in the US, the world's biggest energy consumer.
In after hours access trading, crude is at USD123.61/bbl.
John Kingston, Global Director of Oil, Platts said, “On a day to day basis, you can point out to some speculative activity but then everybody is citing the dollar for along time and in the last several weeks the dollar is up or down 2% and crude is up 10% so it is kind of getting hard to always blame the dollar.”
Douglas McIntyre, 24/7 Wall St, said, “There is a point at which the prices poison OPEC on well, and they know if they really break the global economy, the price oil could drop very sharply. There is a point maybe at USD 150/bbl, where it could damage the economy but there is nothing in that for them.”
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