The weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) kept rising last week, reaching 79.44 U.S. dollars per barrel, the Vienna-based cartel said Monday.
OPEC weekly average oil price has kept climbing for three consecutive weeks. The price rose to 80.19 dollars per barrel on Jan. 7, a record high in 14 months.
The second week of October 2008 saw the oil price dropping from 90.01 dollars to 77.98 dollars. The price remained below 80 U.S. dollars since then, despite that temporary surge above 80 dollars this month.
Starting from late last December, OPEC crude oil prices have been showing an upward trend. The weekly oil price kept rising for three weeks, and its daily oil price has also been increasing for 10 days as well. The upward movement in oil price stopped on the last trading day on Jan. 8.
Analysts believe the major reasons for this continual increase include short-term factors such as cold weather currently in the U.S. and the reduction in its oil inventories.
Since the end of last year, the temperatures in the Northeast U.S. remained low, resulting in oil price increases.
In addition, the volatile situation in Iran also triggers the increase. Analysts also pointed out that, from the medium to long term perspective, the global economic rebound would be the mainstream of the world economy in 2010.
Emerging economies would enjoy fast economic development, which surely will increase their oil consumption,thus pushing the international oil prices going up.
However, as there are still uncertainties affecting the world economic recovery, especially the economic recovery in major oil consumers, such as nations in North America, the European Union, as well as Japan.
It is worth noting that "financial factor" of the international oil market has become more essential. Crude oil has not only been an important energy and raw materials, but also has become a financial capital, as massive amount of
liquidity has entered the crude oil market, producing an increasing impact of speculation on oil prices.
Additionally, the changes in the exchange rate of the U.S. dollar have also been an important reason affecting international oil prices.