Oil at $50
A milestone this week as the price of oil passed $50 a barrel. German Chancellor Gerhard Schroeder commented: "The oil price is very high these days, but we have not seen that it has great effect on the world economy yet," . His was among a number of influential voices in the European zone of 12 nations with that view, including officials from the European Central Bank.
World economic growth is expanding at its fastest pace in 20 years, creating a huge demand for oil -- 82 million barrels a day and growing at a record pace, and crude prices are moving higher in response.
Despite higher production by the Organization of Petroleum Exporting Countries, the latest threat to supply in Nigeria (as rebels told oil companies there to stop production by Friday) adds to the premium already in place because of interrupted supplies on the Gulf of Mexico after hurricane Ivan.
World economic growth is expanding at its fastest pace in 20 years, creating a huge demand for oil -- 82 million barrels a day and growing at a record pace, and crude prices are moving higher in response.
Despite higher production by the Organization of Petroleum Exporting Countries, the latest threat to supply in Nigeria (as rebels told oil companies there to stop production by Friday) adds to the premium already in place because of interrupted supplies on the Gulf of Mexico after hurricane Ivan.
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