Oil Price Is 30.44 Dollars

While the political situation in Venezuela is not settling down and the chance for America to attack Iraq is growing, the international oil price is going up rapidly.

▽Oil price=In the world`s biggest commodity future market, the New York Commodity Exchange, the dealing of low sulfur oil, which would be delivered next January, was ended at 30.44 dollars, which was 0.34 dollars (1.1%) higher on the 18th (local time). This price is the highest in 11 weeks since October 2nd.

The increase of oil price is because the tension in the Gulf area, which is the transport route of the oil from the Middle East, went up since America and the UK devaluate the confidence of the Weapons of Massive Destruction (WMD) Actual Condition Report, submitted to the UN by Iraq on the 7th. The fact that the exportation amount of oil from Venezuela is reduced due to continued general strike incites the increase rate.

In London Market as well, the Brent Oil from the North Sea, which would be delivered in February, was dealt in 29 dollars a barrel, which is 0.56 dollars higher, so it marked the highest price in 2 months.

▽America=While the exportation amount of oil from Venezuela is being reduced, the total oil stock of America is reduced by 1.1% in one week to 283.9 million barrels. However, the White House Spokesperson Ari Fleischer denied the possibility of ‘the release of the strategically stocked oil’ by saying, “There is no possibility to use the strategically stocked oil in the future as well.”

Prior to this, the foreign media reported quoting the US Government officials that two oil companies importing oil from Venezuela asked the US Government to release the strategically stocked oil. The amount of the US strategically stocked oil is 598.7 million barrels, so it is marking the highest point in 25 years.

▽Venezuela=On the 18th, which was the 17th day of the general strike, the Venezuelan Supreme Court handed the command of the Police Force of the Capitol, Karakas to the Mayor Alfred Pena again. Therefore, the effort of the President Hugo Chavez to control the some 9,000 Police Force has been failed.

The President Chavez passed the Command of the Police Force under the Mayor Pena, who insisted the resignation of the President, to the Army; however, the opposition objected to that and instituted a suit in the Supreme Court.

While the oil stock of Venezuela is drying out due to this strike, the quota system, which limits the amount of oil supply, is put in operation. The foreign media reported that around 40% of the gas stations in the nation was closed, and even at the gas stations that were opened, cars were waiting in line that is 1 ~ 2km long.

Rae-Jeong Park ecopark@donga.com