Oil Prices Exceed $55

The spot price of West Texas Intermediate (WTI) has exceeded $55 per barrel for the first time ever.

The Korea Petroleum Development Corporation (PEDCO) announced October 17 that the market closed with a WTI spot price of $55.09 per barrel on October 15, a $0.32 increase from the day earlier, and the first time in WTI trading history that the price of WTI rose above $55.

PEDCO analyzed that the reason for the continuous ascent of the WTI price was the increasing anxiety over a possible lack of heating oil production capacity and seasonal increases in heating oil demand due to the winter season.

An official of PEDCO explained, “As America’s inventory level declines, that the supply of winter heating oil might not cover demand are rising and as a result, the price of WTI is rising, and this tendency is expected to continue for a while.”

The price for Middle East Dubai oil also increased by $0.23 compared to the previous day, and was traded at $37.14.

The price for North Sea Brent oil decreased by $0.17 compared to the previous day.

The rise and fall of the price of oil futures varied with the types of oil.

The November WTI traded at the New York Mercantile Exchange (NYMEX) rose by $0.17 per barrel to $54.93, and the price of December Brent oil traded at International Petroleum Exchange (IPE) of London dropped by $0.16 to $49.93.

Chi-Young Shin sunjung71@hotmail.com