Kuwait, May 04: Kuwait Petroleum Corporation said that the price of the Kuwaiti barrel of crude oil recorded a rise of 25 cents yesterday to settle at USD 83.69 per barrel (pb) in comparison to those of last Friday.
Reports attribute this rise to the continuing revival of the US economy, and Washington’s announcement that its oil exports from the Gulf of Mexico are threatened due to the strong winds approaching the area, which could affect the production of wells on the shores of Louisiana.
Oil prices are currently at a better level than they were at the beginning of the week, following the return of air traffic in Europe after around a week’s halt due to the ash cloud from an Icelandic volcano.
The current price is also a little higher than aimed for by the Organization of Petroleum Exporting Countries (OPEC) which had targeted a price in the range of USD 70-80 pb.
Kuwait Minister of Oil and Minister of Information Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah had announced previously this month that prices are at a good level, expecting them to stay on the verge of USD 70-90 pb affected by the level of global economic growth.
Current prices are also a huge improvement from those recorded in December 2008, when they plummeted drastically to USD 32 pb, after having skyrocketed to USD 136 pb in July the same year.
Experts say oil prices have been affected by the revival of the global economy, which has overcome a period of being rockbottom in the downturn, and is now finally picking up thus leading to an increase in the demand for oil.
The drop of the dollar in comparison to other currencies is a second reason for this rise.
–Agencies–