Texas Oil Price Reaching 40 Dollars per Barrel

As the war with Iraq looms, the price of international oil is nearing $40 dollars per barrel.

At the start of the trading day on Wednesday in New York, medium quality oil (WTI) from West Texas, which is to be delivered in April, was traded at $39.99 dollars per barrel.

Oil prices are at their highest in 12 years since the first Gulf War, which lasted from 1990 to 1991, with analysts saying that this is due to the heightened possibility of a second war with Iraq.

However, as caution was the word, oil prices closed at $37.20 dollars per barrel on the NYSE and dropped to $36.52 dollars per barrel in Asian markets on Thursday.

On the other hand, if the coming war with Iraq spreads throughout the entire Middle East region, prices for oil could reach as high as $80 dollars per barrel, warned New Zealand’s Ministry of Finance on Wednesday.

Merrill Lynch, an American investment firm, foresees that along with a sharp increase in oil prices, currencies could depreciate in those Asian countries which rely heavily on imported petroleum including Japan and Korea.

Rae-Jeong Park ecopark@donga.com