The oil price low point was reached in January 1999 of $17 per barrel, after increased oil production from Iraq coincided with the Asian Financial Crisis, which reduced demand. Prices then increased rapidly, more than doubling by September 2000 to $35, then fell until the end of 2001 before steadily increasing, reaching $40–50 by September 2004. On January 2, 2008, a single trade was made at $100, but the price did not stay above $100 until late February. On July 11, 2008, oil prices rose to a new record of $147.27 following concern over recent Iranian missile tests.
The gas prices are closely related to oil prices.
Historical Gas Price for last 5 years
Labels: economy, futures market, gasoline price, oil price
So far the scale of the current oil price shock is relatively small in comparison to the other rises since World War II. Although over the past 8-months, oil prices have risen by 50%, this pales in comparison to the 240% rise over a few weeks in 1973/4, 150% over six months in 1978/9 and 100% over a year in 2007/8 to name a few. Will oil price above $125 per barrel threaten the US recovery?
Labels: commodities, economy, oil price, USA
China main goal is to have a stable country and a stable regional environment; it wants uninterrupted supplies of raw materials, and it does not want to depend on the US for that. The oil coming through the Malacca Straits now, is effectively protected by the US Pacific Fleet. China wants to protect that itself. In the region around and beyond Japan, China would like to be the predominant power there over time. So that will take time, building a blue-water navy, if you like, a military power which can project military power and it is not possible to do that overnight. But already in the last couple of years, we have seen the Chinese Navy finally in the Indian Ocean, and building bases along there.
Labels: China, economy, Indian Ocean, navy, oil, Pacific
Can this happen to your country currency? In case of Icelandic krona it all started in October 2008, when the effects of the GFC brought a huge disruption to the Icelandic banking sector. The value of the krona plummeted, and on 7 October 2008 the Icelandic Central Bank attempted to peg the krona at 130 against the euro. This plan did not work. The krona later fell to 340 against the euro
before trade in the currency was suspended. After a period of tentative, very low-volume international trading in the krona, activity had been expected to pick up again throughout November 2008, albeit still with low liquidity, as Iceland secured an IMF loan. However as of January 2009 the krona was still not being traded regularly, with the exchange rate being set only intermittently, as of December 3, 2008 at 290 ISK per euro. The previously high costs for foreign tourists have been drastically reduced, which Iceland's tourism industry hopes to exploit.
Labels: banking, currency, Iceland, IMF
According to Charles Robert Darwin natural selection favors the most fit and adoptable organisms around. However those species which survive may not always be optimal form of life. The researchers from The University of Texas at Austin, led by evolutionary biologist Dr. Matthew Cowperthwaite have shown that what may be good in the short run, may hinder evolution in the long run. Cowperthwaite explains "Some traits are easy to evolve - formed by many different combinations of mutations. Others are hard to evolve - made from an unlikely genetic recipe. Evolution gives us the easy ones, even when they are not the best." This research has been conducted using computer models of RNA molecules evolving by mutation and natural selection.
Labels: Charles Darwin, evolution, natural selection
Bank of America has the biggest fleet of corporate jets with eight planes each worth $US45-50 million and costing $US10,000 per hour to fly. Thay have put three corporate planes and a helicopter up for sale in a bid to save money. There will be many more of them for sale rather sooner than later. If they can not sell them at reasonable price there is still planty of space in a desert. I think the aircraft storage business should be good.
Labels: aircraft storage, bankers, corporate jet
I just picked up an old magazine from June 2008 and found the article there with the title: Speculators blamed for rise in oil price. Now that the crude oil went down by more than $100 per barrel, we know exactly how much pure speculation we had there. Back then, some analysts believed that record oil prices are a result of speculation and are certain to head lower. I hope they all made a trade on futures market and having some big party now.
Labels: futures market, oil price, speculation