Skyrocketing Oil Prices Set Record Highs

International oil prices have once again broken the record high.

On August 18, according to the Korea National Oil Corporation, spot price (Aug 17) of West Texas Intermediate (WTI) crude oil rose by $0.70, finishing at $46.81 per barrel, breaking the record high for oil prices.

Brent oil prices also rose by $0.06, closing the market at $43.77 and surpassing its record high as well.

The 10-day average for WTI was $44.99, while Brent oil broke the $42 barrier, with an average price of $42.16.

Prices for forward exchanges also rose accordingly.

At the New York Mercantile Exchange, WTI September oil price was $46.75, which resulted after a $0.70 increase. Brent oil exchanged at the International Petroleum Exchange rose by $0.30, closing the market at $42.99. These prices are the highest ever after the initiation of forward exchange.

However, anticipation of the settling crisis in Venezuela was applied a day later for Middle Eastern Dubai Oil, whose markets closed with a $0.21 decrease to finish at $39.65.

Officials from the National Oil Corporation explained the sudden spikes as a result of recent anticipation of U.S. oil consumption and stagnating Iraqi oil exports due to fires occurring around its oil drilling sites.

Chi-Young Shin higgledy@donga.com