Fluctuating oil by Lenka Filipova

Crude oil is erratic from this Monday. First of all, it significantly jumped up reaching its record of $ 139.89 for a barrel. Then the change occurred, just after the hesitation of investors whether to invest into Saudi Arabia' s in order to stimulate the production. As a result of this, the New York Mercantile Exchange settled a price for a barrel to $ 134.61. Before that, they decreased to the lower level ever, that was $ 132.84. Well, this is all quite confusing, thus analysts explained the behaviour of the situation. They stressed the significance of Saudi Arabia's decision to enlarge the production. Actually, Saudi Arabia, which is the chief leader in oil producer, announced during the weekend that it would boost the production in a way that it would manufacture 200,000 barrels more per a day. That is, 2 per cent increase form June to July. At the same time, the expiration of all crude oil possibilities announced on Tuesday. This results in both options, either to buy features or sell them on their lower or higher price.The president of Tampa, James Cordier, thinks that the fact that the expiration options are proclaimed, this was the main cause of these ticklish days. However, his opinion is that if Saudi Arabia wanted to have en impact on prices, it would have to produce as many as a million barrels per day.All in all, if the price for oil will continue in this way reaching $140, the consumers will definitely suffer to unbelievable extent. And consequently, not only the direct consumers will suffer, but also those who use the services provided by the primary customers.

by Lenka Filipova for PocketNews (http://pocketnews.tv)

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edited by Katarina Gaskova