Oil prices end down after touching a record by Magdalena Rosova

The oil price hit another record of $143 a barrel before ending lower. Analysts expect the price to remain same in the second half of 2008.

Lowering oil and gasoline need estimates and a pendulous dollar nullified investor concerns over supply. Unstable global economy and tensions in the Middle East are also a problem.

Phil Flynn, an energy analyst at Alaron Trading Corp. in Chicago said “demand destruction in the U.S. is a lot larger than previously thought" and that "there are more signs that demand is deteriorating."
The price of oil was $96 for a barrel at the beginning of 2008 and has risen according to higher demand in China and others nations. Consumers and businesses were pressed to cut back the amount of gas they use.

Another reason of lowering oil prices on Monday is a hardier dollar. The dollar rose after the Chicago Purchasing Managers' index topped the expected estimates. However Stephen Schork, U.S. analyst and trader, said that when other countries raise their interest rates, the dollar will be weakened again.

Meanwhile, retail gasoline reached a new national average of $ 4.086 per gallon, according to a survey.

Geopolitical tension, mainly in Iran and surroundings country, are also reason for boosting prices. Tehran warned that if it were provoked it would move to control a key oil Gulf's passageway.

The potential partnership of big Western companies in Iraq's oil industry has been criticized recently. Although, some have almost signed no-bid contracts with the Iraqi government, on Monday Hussain al-Shahristani, Iraqi Oil Minister, instead named 35 countries that can bid on service contracts for the oil fields in Iraqi.


related story: http://money.cnn.com/2008/06/30/news/economy/gas/index.htm?postversion=2008063012

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

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