Oil jumps $5 on US-Russia tensions, sliding dollar by Radka Konkolova

In the time when people have finally been reconciled with the oil price’s situation and they have been relatively calmer because of that, another hit came in few minutes. Some time the situation was quite good and the price of oil and petrol was constantly going down. But this changed immediately. So now the price of black gold started to rise again.

There was more than one reason for this change. The first were the climatic changes and tropical storms in Cuba. The second one, but probably more important and serious, was the agreement between United States and Poland, which relates to American rocket basement which should be build in this very state of Central Europe. And the main problem is that American biggest rival, Russia, has been against this agreement. So Russian officials have threatened the supply of oil for Poland will be cancelled. And this would mean a huge problem for Poland, while this country gets the most of the oil needs from Russia. And I think almost everybody is sure Russia can completely stop the supplies because it wouldn’t cause bigger problems for them. And because they are those who possess this crude they can put down the conditions as they like. They have even shrunk oil and nature gas supplies not only for Poland but also for Czech Republic which also signed similar agreement with the United States.

Another reason of increasing oil prices could be the “war” in Georgia. Russia has got their troops there because of some disorders. Later they have promised to detain them back what should mean calming down this conflict, but they haven’t fulfilled this promise.

Actually, everything has got some impact on the market with oil and gas and on its development, while they are the most important crude for states. Every country has got some crude inventories which should cover the demand for some time, but they are not eternal and it is possible they will lapse in short time.

So for now some countries have to use their own inventories more than in other time and for others this will probably mean more expensive petrol. Anyway, finally we will see the next movement of this situation. But everybody hopes it won’t be such bad and the price won’t reach a new peak...

related story: http://news.yahoo.com/s/ap/20080821/ap_on_bi_ge/oil_prices;_ylt=AijqxuZcj6rbiItBpUdp6p2s0NUE

by Radka Konkolova for PocketNews (http://pocketnews.tv)

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posted by Lucia Adamova