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Fifty-four Dollars and Seventy-seven Cents

Posted October. 15, 2004 23:08,   


With winter ahead, the international oil prices jumped with West Texas Intermediate (WTI) to $55 per barrel as the anxiety that oil demand will surpass oil supply increased.

On October 15, the Korea Petroleum Development Corporation (PEDCO) announced that, the market closed with a WTI spot price of $54.77 per barrel as of October 14, a $0.97 increase from the day before.

This is the first time in WTI trading history that the spot prices have exceeded $54.

The price for North Sea Brent oil also climbed by $1.72 compared to the previous day, up to $50.85 and reentering the $50 level.

Anticipating the increase of demand for oil during the winter, the price of Middle East Dubai oil also rose by $0.45 to $36.91.

Futures prices also saw a large increase. WTI and Brent oil for November delivery rose $1.12 and $0.79 respectively, closing at $54.76 and $50.84 respectively.

PEDCO analyzed, “As the U.S. Energy Information Administration announced after it’s weekly oil stock examination that the stock of heating oil has decreased, the WTI and Brent oil prices rose, and with the effect of an insecure winter supply/demand, the price of Dubai oil increased as well.”

Chi-Young Shin higgledy@donga.com