2003 to 2008 world oil market chronology

2003 to 2008 world oil market chronology

:"This article is a chronolgy of events affecting the oil market. For a discussion of the energy crisis of the same period, see 2000s energy crisis and Effects of 2000s energy crisis. For current fuel prices see Gasoline usage and pricing."From the mid-1980s to September 2003, the inflation adjusted price of a barrel of crude oil on NYMEX was generally under $25/barrel. Then, during 2004, the price rose above $40, and then $50. A series of events led the price to exceed $60 by August 11, 2005, and then briefly exceed $75 in the middle of 2006. Prices then dropped back to $60/barrel by the early part of 2007 before rising steeply again to $92/barrel by October 2007, and $99.29/barrel for December futures in New York on November 21, 2007. [cite news
title=Oil reaches new record above $99
date=November 21, 2007
] Throughout the first half of 2008, oil regularly reached record high prices. On February 29, 2008, oil prices peaked at $103.05 per barrel, [cite news
title=Oil prices pushed to fresh high
publisher=BBC News
] and reached $110.20 on March 12, 2008, [cite news
title=Oil crosses record $110, despite supply rise
author=David Goldman
publisher=CNN Money
date=March 12, 2008
] the sixth record in seven trading days. [cite news
title=Gas Prices Near Records, Following Oil
author=John Wilen
publisher=Associated Press
date=Monday March 10, 3:50 pm
] [cite news
title=Oil sets fresh record above $109
publisher=BBC News
date=March 11, 2008
] Prices on June 27, 2008, touched $141.71/barrel, for August delivery in the New York Mercantile Exchange (after the recent $140.56/barrel), amid Libya's threat to cut output, and OPEC's president predicted prices may reach $170 by the Northern summer. [cite news
title=Oil Is Little Changed After Falling as Investors Sell Contracts
] [cite news
title=Oil Rises to Record Above $141 as Investors Buy Commodities
] The most recent price per barrel maximum of $147.02 was reached on July 11, 2008. [cite news
title=Oil hits new high on Iran fears
] After falling below $100 in the late summer of 2008, prices rose again in late September. On September 22, oil rose over $25 to $130 before settling again to $120.92, marking a record one-day gain of $16.37. Electronic crude oil trading was temporarily halted by NYMEX when the daily price rise limit of $10 was reached, but the limit was reset seconds later and trading resumed. [ [http://news.yahoo.com/s/ap/20080922/ap_on_bi_ge/oil_prices Oil spikes $25 a barrel on anxiety over US bailout] ]

As the price of producing petroleum did not rise significantly, the price increases have coincided with a period of record profits for the oil industry.Fact|date=August 2008 Between 2004 and 2007, the profits of the six supermajors - ExxonMobil, Total, Shell, BP, Chevron, and ConocoPhillips - totaled $494.8 billion. [ [http://money.cnn.com/magazines/fortune/global500/2008/ Global 500] , "Fortune" website, accessed Aug. 2008.]



Instability in oil producing nations helped boost U.S. crude oil prices to an average of $31 a barrel in 2003, up 19% from the average in 2002. [ [http://www.usatoday.com/money/industries/energy/2003-12-31-oil-prices-2003_x.htm Oil prices in 2003 averaged highest in 20 years] , "USA Today"] The U.S.-led 2003 invasion of Iraq was a significant event for oil markets because of Iraq's large oil reserves. [ [http://usgovinfo.about.com/library/weekly/aairaqioil.htm Iraq: Oil and Economy] ] The price of oil rose in the months running up to the invasion in March. Prices dropped in mid-2003, and several observers attributed this to the perception that the armed conflict would come to a quick resolution. The conflict coincided with an increase in global demand for petroleum, but it also reduced Iraq's current oil production, and has commonly been blamed in part for oil price increases since.cite news |first=Robert |last=Collier |title=Iraq invasion may be remembered as the start of the age of oil scarcity |url=http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/03/20/MNGJKBS9PM1.DTL |work=San Francisco Chronicle |date=2005-03-20 |accessdate=2008-03-20 ] However, peakniksClarifyme|date=July 2008 such as Matthew Simmons tend to emphasize the simultaneous peaking and decline of many present or former oil-exporting countriesClarifyme|date=July 2008 around the world, such as Mexico, Indonesia, and the United Kingdom for the overall upward price trend of oil, contending that the combination of relentlessly rising global demand and peaking or eventually declining supply means the price must eventually go up. According to Simmons,cite web
url= http://www.simmonsco-intl.com/files/Another%20Nail%20in%20the%20Coffin.pdf
title= Another Nail in the Coffin of the Case Against Peak Oil
accessdate= 2008-04-05
author= Matthew Simmons
last= Simmons
first= Matthew
authorlink= Matthew Simmons
date= 2007-11-16
] isolated events such as the Iraq war affect short-term prices but by themselves do not determine the long-term trend. Simmons cites the use of enhanced oil recovery techniques in large fields such as Mexico's Cantarell, which maintained production for a few years, but only made the eventual decline all the more drastic. Pumping oil out of Iraq faster may reduce petroleum prices in the short term, but cannot keep the price low forever. From Simmons' point of view, then, the invasion of Iraq happened to be a major event that we can associate with the start of the long-term oil price rise, but at most this merely shifted the schedule ahead a few years, and may actually mitigate the inevitable decline in oil production by keeping some of Iraq's oil in reserve.


As a direct consequence of the Iraq War that followed the 2003 invasion of Iraq, the oil production capacity of Iraq was cut from more than three to two million barrels per day.cite news |author= Youssef M. Ibrahim |title= The world has lost Iraq's oil |url= http://www.usatoday.com/news/opinion/editorials/2004-10-05-iraqi-oil_x.htm |work= USA Today |date= 2004-05-10 |accessdate= 2008-03-20]

Mid-2005 increase

After retreating for several months in late 2004 and early 2005, crude oil prices rose to new highs in March 2005. The price on NYMEX has been above $50 per barrel since March 5, 2005. On March 16, 2005, the price surpassed the October 2004 high of $55.17 to close at $56.46. In April 2005 the price began to fall, reaching $53.32 on April 9. It then reversed course and headed to an all time high of $58.28, driven mainly by lingering concerns of a prolonged weak dollar.Fact|date=July 2008 In June 2005, crude oil prices broke the psychological barrier of $60.

2005–2006 increases

In the United States gasoline prices reached a record high during the first week of September 2005 in the aftermath of Hurricane Katrina. The average retail price was nearly $3.04 per U.S. gallon. [cite web
title=Weekly U.S. Retail Gasoline Prices, Regular Grade
] The previous high was $1.42 per gallon in March 1981, which would be $3.20 per U.S. gallon after adjustment for inflation. In comparison, the average retail price of a litre of petrol in the United Kingdom was 86.4p on October 19, 2006. [cite web
title=Free UK Petrol Prices
] This equates to USD 6.13 per U.S. gallon.

On January 17, 2006 crude oil for February delivery rose by USD 2.38 (3.7%) to USD 66.30 a barrel. This was the highest increase since early October 2005. Observers believe that violence in Nigeria, and the increasing tension between USA and Iran are responsible for this price increase. Continued tension between Iran and USA raised the price to $68.38 on January 31. [ [http://news.bbc.co.uk/2/hi/business/4664590.stm BBC NEWS | Business | Iran moves to ease oil concerns ] ] However, due to rising stockpiles of crude oil and an abnormally warm northern winter, on February 14 the price of crude hit a 2006 low of $59.60. [ [http://www.bloomberg.com/energy Bloomberg.com: Energy Prices ] ]

Oil production in Iraq continued to decline as result of the ongoing conflict, decreasing to an output of just convert|1|Moilbbl/d|m3/d. cite news |first=Jim |last=Krane |title=Iraq Oil Output Lowest Since Invasion |url=http://www.washingtonpost.com/wp-dyn/content/article/2006/04/28/AR2006042801082.html |format= |work=Washington Post |publisher= |date=2006-04-28 |accessdate=2008-03-20]

Mid-2006 increase

Regular gasoline prices were averaging USD3.036 per U.S. gallon across the U.S. in August, 2006, slightly below the post-Katrina peak of USD 3.057. [ [http://money.cnn.com/2006/08/07/news/economy/gas_prices/index.htm Record gas prices seen after Alaska shutdown - Aug. 7, 2006 ] ] Adjusted for inflation, these U.S. prices were the highest in 25 years. The all-time U.S. inflation-adjusted record is approximately $3.20 per U.S. gallon, set in March 1981. [ [http://www.foxnews.com/story/0,2933,206457,00.html FOXNews.com - Government: Gas Prices Rise, But More Slowly - Energy | Alternative Energy | Oil - FOXNews ] ]

In July 2006, crude oil for August delivery traded over USD 79 per barrel (bbl), [ [http://money.cnn.com/data/commodities/index.html Commodities - Latest Trading Prices and Data from CNNMoney ] ] an all-time record. The mid-2006 runup is attributable to increasing gasoline consumption, up 1.9% year over year in the U.S., and geopolitical tensions as North Korea launched missiles, the tension between Iran and USA drags on, and Israel and Lebanon went to war. The early 2006 runup in prices has been attributed to a number of factors, including continuing supply disruptions from the 2005 Atlantic hurricane season (18% of Gulf Coast supplies were still off-line in early 2006),Fact|date=June 2008 supply disruptions from the changeover from MTBE to ethanol, lingering concerns over Iran and Nigeria, and anticipation of higher summer demand in the Northern Hemisphere. Hostilities in Nigeria alone have caused a supply disruption of convert|675000|oilbbl/d|m3/d|abbr=on. [ [http://www.angolapress-angop.ao/noticia-e.asp?ID=460075 AngolaPress - News ] ] On August 7, BP shut down its Prudhoe Bay, Alaska field due to pipeline corrosion, bringing supply down by up to 400,000 bbl/day or about 8% of total U.S. production. [ [http://money.cnn.com/2006/08/07/news/international/oil_alaska/index.htm BP shuts largest U.S. oil field due to damaged pipeline - Aug. 7, 2006 ] ]

The higher price of oil substantially cut growth of world oil demand in 2006, including an outright reduction in the oil demand of the OECD. [ [http://www.finfacts.com/irelandbusinessnews/publish/article_10008746.shtml Oil demand falls in developed world for first time in 20 years ] ]

eptember 2006 decreases

Oil prices began to decrease during September 2006, closing below $66/barrel on September 11. [ [http://www.iht.com/articles/2006/09/11/business/opec.php Despite drop in oil price, OPEC stick with targets] . International Herald Tribune. September 11, 2006.] The U.S. national average gas price dropped to $2.70/gallon in early September, down 0.11 from the previous week. Some cities were seeing average prices below US$2.40/gallon. [ [http://www.bizjournals.com/sanantonio/stories/2006/09/04/daily30.html Calmer Weather Fuels Lower Gas Prices in Texas] . San Antonio Business Journal. September 8, 2006.]

In September, prices continued to fall, and the average cost of gasoline per gallon (U.S. nationwide) was below US$2.50. On September 19, crude oil fell $2.14 to a 6 month low of $61.66. The recent significant fall in the price of crude oil has led some to speculate that price of gasoline may fall to as low as $1.15/gallon. [ [http://www.journalstar.com/articles/2006/09/15/top_story/extras/doc4509d8dcefed9603383138.txt Gas prices poised to drop further] . Kevin G. Hall, "The Associated Press." September 15, 2006. Last accessed September 22, 2006.] By October 3, the price closed at $58.68, its lowest close since mid-February. [ [http://money.cnn.com/2006/10/03/markets/oil.reut/index.htm?postversion=2006100315 Oil flops to seven-month low, below US$59] Reuters, "CNNMoney.com", October 3, 2006. Last accessed October 3, 2006.Dead link|date=July 2008] Reasons for the recent price decreases have included easing tensions with Iran, ample supply, and the lack of hurricane activity in oil-producing regions of the Gulf of Mexico.Fact|date=February 2007

After news of North Korea's successful nuclear test on October 9, 2006, oil prices rose past $60 a barrel, but fell back the next day. Also, for several days in early October, oil prices bounced around the $60 mark on possible news that some OPEC countries would cut oil production by convert|1|Moilbbl/d|m3/d. OPEC had not cut its production since December 2004. However, the oil market has lately seemed to shrug that news off, especially considering that Saudi Arabia said that no such agreement exists (to cut production).

On October 11, oil prices fell below $58 for the first time since February. Days later, on October 20, a barrel of crude oil closed at $56.82 per barrel. The same day, OPEC declared that they would cut production by convert|1.2|Moilbbl/d|m3/d in order to arrest the sliding price, the first drop since December 2004. [ [http://www.usatoday.com/money/industries/energy/2006-10-19-opec_x.htm?csp=34 "OPEC moves against falling oil prices"] , Reuters via "USA Today", October 20, 2006]

GSCI reweighting

In early August, the weighting of gasoline futures in the Goldman Sachs Commodity Index was significantly reduced, causing investors who were long oil to sell. [cite news
title=Change in Goldman Index Played Role in Gasoline Price Drop
author=Heather Timmons
publisher=The New York Times
date=September 30, 2006
] The extent to which the price deceases of late 2006 can be attributed to the reweighting is disputed. [cite web
title=The great gasoline price conspiracy
author=James Hamilton
date=October 1, 2006

Mid-2007 increases

The U.S. national average on May 16, 2007 was $3.09, and some parts of the West Coast were selling regular unleaded at $3.33/gallon (e.g. San Francisco and Los Angeles). On NYMEX, a barrel was trading at $73.93, based on civil unrest in Nigeria. A pipeline disruption in the North Sea has also bumped the price of Brent Crude up to $79.64 (an all time high). [ [http://www.bloomberg.com/energy/ Bloomberg.com: Energy Prices ] ]

Legislation from the U.S. Congress, from approving the No Oil Production and Exporting Cartels Act of 2007 (in which the Sherman Act is amended towards foreign companies acting as cartels), and hearings in May 2007 from the House Energy and Commerce Committee's Oversight and Investigations Subcommittee will address the following: price gouging (especially from oil companies) as a federal crime, and the intervention of the Joint Economic Committee led by Senator Chuck Schumer to which lawmakers should intervene where the current corporate mergers (ExxonMobil, ConocoPhillips, Chevron, Shell) should break up, as a way to protect American consumers.

The "NOPEC" bill passed the U.S. House of Representatives with a 345-72 vote on May 22, 2007.

On September 12, 2007 oil prices rose to an all-time high of $80 per barrel, which surpassed even the highs of the early 1980s. High prices and restricted supplies have increased the concerns of those who believe that peak oil is either imminent, or may have already passed, because of the implication that oil supplies will not increase significantly beyond that point, and in the longer term a decline will occur. It should be remembered that some of this trend in prices is partly due to the slide of the dollar against other currencies. Measured in Euro for example, as the dollar has been falling steadily, the price of oil appears much less volatile. This results in worldwide price gains being relatively mild, but as the dollar loses its value against the euro, oil prices in the United States rise because they are priced in dollars.

Late 2007 increases

On October 19, 2007, U.S. light crude rose to a new height of $90.02 per barrel due to a combination of ongoing tensions in eastern Turkey and the reducing strength of the U.S. dollar. [ [http://newsvote.bbc.co.uk/1/hi/business/7052071.stm Oil prices touch above $90 level] , "BBC News"] Prices fell briefly on the expectation of increased U.S. crude oil stocks, however they rose again rapidly to a peak of $92.22 on October 26, 2007 when stocks were revealed to have instead fallen. [ [http://newsvote.bbc.co.uk/1/hi/business/7063250.stm Supply fears push oil above $92] ]

Prices increased throughout late October and early November. On November 7, 2007 light crude oil reached another record, closing at $98.10 per barrel. On November 21, 2007, oil prices rose to a new high of $99.29 per barrel, [ [http://www.cnn.com/2007/BUSINESS/11/21/oil.prices.ap/index.html] , "CNN News"] leading to fears of the price breaking the $100 per barrel mark due to a "Wall Street Journal" report which stated that peak oil had arrived.

Early 2008 increases

On January 2, 2008, U.S. light crude surpassed the psychological barrier of $100 before falling to $99.69, due to tensions on New Years Day in Nigeria and on suspicion that U.S. stocks of crude will have dropped for the seventh consecutive week. A BBC report from the following day stated that a single trader bid up the price. Stephen Schork, a former floor trader on the New York Mercantile Exchange and the editor of an oil market newsletter, said one floor trader bought convert|1000|oilbbl|m3, the smallest amount permitted, and sold it immediately for $99.40 at a $600 loss. However, on January 3, oil rose to $100.05 a barrel in intraday trading. [Single trader behind oil record - http://news.bbc.co.uk/1/hi/business/7169543.stm] Oil fell back later in the week to $97.91 at the close of trading on Friday, January 4, in part due to a weak jobs report that showed unemployment had risen. [cite web | url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2UkH.smkwps| title=Oil Falls More Than $1 as U.S. Jobs Data Signal Lower Fuel Use | last=Shenk | first=Mark |publisher=Bloomberg L.P. | date=January 4, 2008]

Despite news on weakened demand, the price of oil once again rose to $100.10 a barrel on February 19th after a Texas refinery fire, rumors about OPEC production cuts, and evidence that the supply of oil is decreasing faster than demand of oil.Oil prices rose above $101 a barrel February 27 2008. [cite web | url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2UkH.smkwps| title=http://edition.cnn.com/2008/BUSINESS/02/27/oil.prices.ap/index.html | last=CNN| publisher=CNN | date=February 27, 2008] Oil prices surpassed $103 a barrel February 29 2008 as continued weakness in the U.S. dollar and the prospect of lower Federal funds rates attracted fresh capital to the oil market. [cite web | url=http://edition.cnn.com/2008/BUSINESS/02/28/oil.prices.ap/index.html |title=Oil hits record high above $103 | publisher=CNN | date=February 29, 2008]

Oil prices continued to rise to $104 on March 3, 2008 continued by the weakness in the United States dollar.Fact|date=March 2008 The OPEC on March 5 2008 accused the United States of economic "mismanagement" that it said is pushing oil prices to record highs, rebuffing calls to boost output and laying blame at the feet of the George W. Bush administration. [cite web | url=http://edition.cnn.com/2008/WORLD/europe/03/05/opec.oil.ap/index.html |title=OPEC accuses U.S. on oil prices | publisher=CNN | date=March 5, 2008] Oil prices surged above $110 to a new inflation-adjusted record on March 12 2008 before settling at $109.92. [cite web | url=http://www.bloomberg.com/apps/news?pid=20601087&sid=a8GJB8fjITio&refer=home|title=Oil Rises Above $110 to Record as the Dollar Falls Against Euro | publisher=Bloomberg | date=March 12, 2008] Oil continued its soar skywards, hit $111 a barrel, on March 13 2008, before sliding back to below $110 amid fears of economic recession in the United States. [cite web | url=http://edition.cnn.com/2008/BUSINESS/03/13/world.markets/index.html|title=Gold, oil reach highs amid U.S. recession fears | publisher=CNN | date=March 13, 2008] The record was again broken on March 17, 2008, with U.S. light sweet crude reaching $111.80. [cite web | url=http://newsvote.bbc.co.uk/1/hi/business/7300204.stm|title=Oil and gold jump to new records | publisher=BBC | date=March 17, 2008] On April 15, 2008 the price of oil broke the $114 mark for the first time. The price increased to $115.07/barrel on April 16, 2008 due to the increasing weakness of the U.S. dollar, [ [http://news.bbc.co.uk/1/hi/business/7349852.stm BBC News: Oil price holding firm above $114] ] and increased again to $117 per barrel on April 18, 2008 after a militant group in Nigeria said it had attacked an oil pipeline. [ [http://newsvote.bbc.co.uk/1/hi/business/7355121.stm BBC News: Oil prices continue upward march] ] Oil prices rose to a new high of $119.90 a barrel on April 22, 2008, [cite news
title= Oil nears $120
publisher=CNN Money
date=April, 22, 2008
] before dipping and then rising $3 on April 25, 2008 to $119.10 on the New York Mercantile Exchange after a news report that a ship contracted by the U.S Military Sealift Command fired at an Iranian boat. [ [http://www.marketwatch.com/news/story/crude-surges-after-report-us/story.aspx?guid=%7B56D55DC5%2D7A17%2D4C73%2D8CD6%2D8652531F3C63%7D&siteid=bnb Oil jumps over $3 after report on U.S. shot toward Iran boat] ]

Mid-2008 increases

On May 9, 2008, the oil price exceeded $125 per barrel for the first time, [ [http://www.enerfaxgold.com/ Energy, Oil & Gas ] ] while on May 21, 2008 the oil price exceeded already $130 per barrel of Brent Crude. In approximately 24 hours from May 21 to May 22nd, 2008, the price per barrel of oil passed $135.

On June 6, prices rose $11 in 24 hours, the largest gain in history. [ [http://www.nytimes.com/2008/06/07/business/07oil.html?em&ex=1212897600&en=3877f96aee464d82&ei=5087%0A Oil Prices Take a Nerve-Rattling Jump Past $138, New York Times, June 7, 2008] ] The possibility of an attack on Iran by Israel was considered to have contributed to the rise. [ [http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD914VUFG7] Dead link|date=August 2008] The combination of two major oil suppliers reducing supply has generated fears of a repeat of the 1973 oil crisis. The mid-July decision of the Saudi kingdom to increase oil output has caused no significant influence on prices, but the caused the Iranian government misgivings. According to the oil minister of the Islamic Republic of Iran Gholam-Hossein Nozari the world markets are saturated [ [http://www.presstv.ir/Detail.aspx?id=59780&sectionid=351020103 Iran: World oil market saturated] ] and that a Saudi promise of increased production would not lower prices. [ [http://www.presstv.ir/Detail.aspx?id=60841&sectionid=3510213 Oil output increase will not affect price] ] Several Asian refineries were refusing Saudi petroleum in late June as over priced and of the wrong grade. [http://www.presstv.ir/Detail.aspx?id=60318&sectionid=3510213 Asia says no to extra Saudi crude] ]

Oil prices on June 28, hit record of $142.99 at 1:58 p.m., the highest since 1983 and to $142.97, the highest intraday price since 1988, owing to a weak dollar, geopolitical unrest and a global equities slump. [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=al_YJdkPa3b8&refer=home bloomberg.com, Oil Rises Above $142 for First Time as Investors Spurn Stocks] ] [ [http://www.boston.com/business/articles/2008/06/28/oil_rises_to_trading_closing_records_on_falling_us_dollar/ boston.com, Oil rises to trading, closing records on falling U.S. dollar] ] [ [http://www.guardian.co.uk/business/feedarticle/7615328 guardian.co.uk, Oil hits record near $143 on rising investor flows] ] Oil rose on July 1 to a NYME record $143.67 and a London's ICE Futures Europe exchange record $143.91. [ [http://www.bloomberg.com/apps/news?pid=20601081&sid=ayPdya_4mTFI&refer=australia bloomberg.com, Oil Is Little Changed, After a Record, Amid Iran Supply Concern] ] [ [http://www.theaustralian.news.com.au/story/0,25197,23950539-5005200,00.html theaustralian.news.com.au, Oil retreats after striking new peak] ]

On July 3, "the Brent North Sea crude contract for August delivery rose to $US145.01 a barrel" in Asian trade. [ [http://www.channelnewsasia.com/stories/afp_world_business/view/357932/1/.html Oil prices hit new peak above US$145] ] London Brent crude reached a record of $145.75 a barrel, and Brent crude for August delivery peaked to a record $145.11 a barrel on London's ICE Futures Europe exchange, and to $144.44 a barrel on the NYMExchange. [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=aPW1IHcLY51A&refer=home bloomberg.com, Crude Oil Rises to Record Above $144 After U.S. Stockpile Drop] ] [ [http://uk.reuters.com/article/businessNews/idUKMOL27139920080703 uk.reuters.com, Oil hits new peak] ] By midday in Europe, light, sweet crude for August rose to a record $145.85 a barrel on the NYME while Brent crude futures rose to a trading record of $146.69 a barrel on the ICE Futures exchange. [ [http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD91MAM4O3 ap.google.com, Oil prices near $146] ] [ [http://www.washingtontimes.com/news/2008/jul/03/oil-prices-near-146/ washingtontimes.com, Oil prices near $146] ] On July 11, Oil hit another record of $147.00 a barrel, after a $10.00 decline in oil before. [ [http://news.theage.com.au/world/oil-prices-top-147-us-dollars-per-barrel-20080712-3dvb.html The Age, Oil prices top 147 US dollars per barrel] ]

Mid-summer to Early Fall 2008 decreases

Oil prices began to decrease in the middle of July. On July 15, a selloff began after remarks by Chairman of the Federal Reserve Ben Bernanke which indicated significant demand destruction within the US because of the high prices. Bernanke's statement precipitated an $8 drop, the biggest since the first US-Iraq war. [ [http://money.cnn.com/2008/07/15/markets/oil/ CNN, Biggest oil price drop in 17 years] ] [ [http://money.cnn.com/2008/07/16/markets/oil/index.htm CNN, Oil's two-day decline: more than $10 a barrel] ] By the end of the week, crude oil had fallen by 11% to $128, also affected by an apparent easing of tensions between the US and Iran. [ [http://business.theage.com.au/business/oil-sags-to-6week-low-as-war-worries-ebb-20080719-3hop.html The Age, Oil sags to 6-week low as war worries ebb] ] By August 13, prices had fallen to $113 a barrel. [ [http://biz.yahoo.com/ap/080813/oil_prices.html] ] By the middle of September, oil price fell below $100 for the first time in over six months, [http://www.marketwatch.com/news/story/oil-futures-tumble-5-trade/story.aspx?guid={4EADE8D4-45B2-4C67-829F-5A6C71B52F17}] falling below $92 in the aftermath of the Lehman Brothers bankruptcy. [ [http://www.bloomberg.com/apps/news?pid=20601087&sid=aIkZ319MpM0g&refer=home, Crude Oil Drops Below $92 as Lehman Adds to Demand Concern] ] Prices recovered to once again cross $100 per barrel within a few days, but the oil price remained more volatile, and heavily influenced by the credit crunch.Fact|date=September 2008 After congress failed to pass the $700 billion bailout, the price of oil fell almost $10 back to $96 per barrel.Fact|date=September 2008

On October 6, prices fell below $90, to levels last seen in February. A stronger US dollar and a likely decline in European demand were among the causes. [ [http://money.cnn.com/2008/10/06/markets/oil/index.htm] ] By October 10th, the price of crude was below $78.Fact|date=October 2008


External links

* [http://www.eia.doe.gov/emeu/cabs/MEC_Past/index.html U.S. DOE EIA energy chronology and analysis]
* [http://www.wtrg.com/prices.htm Oil Price History and Analysis]

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