News & Reports News Year 2010 December , 2010 Oil Global ,Market Oil prices pushing closer to $100

Oil Global ,Market Oil prices pushing closer to $100

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Global oil prices are pushing closer to $100 a barrel as the cold weather around the world has raised demand.

Benchmark Brent crude closed 48 cents down at more than $93 on Friday after hitting nearly $95 earlier in the day, the highest level since October 2008.

The rally in Brent crude is partly due to the severe cold snap in Europe, with more freezing temperatures and snow predicted in parts of Europe over the weekend expected to boost fuel demand.

Meanwhile, a group of OPEC ministers is scheduled to meet in Egypt this weekend to discuss oil production and prices, but analysts predict more gains for oil prices in the coming week.

"The reality is that the growth of emerging markets is driving up oil prices, but oil prices are not restraining emerging economies in any significant way," Reuters quoted Sara Johnson, senior research director of global economics at IHS Global Insights in Lexington, Massachusetts, as saying.

Higher prices can reduce demand and boost production costs, but the impact will not be that great as many countries have fuel subsidies, which ease manufacturing, transportation, and consumer costs, she stated.
(press tv)