The European Central Bank has just announced the expected 0.25% rise in interest rates, however oil prices were rising in London before that announcement.
As I explained in our feature about possible oil price rises this morning, the price of crude is linked to the strength of the dollar, and is therefore susceptible to European interest rate changes. Unfortunately for those of us who are struggling with these high oil prices already, the price of London Brent Crude had already reached a record high of $146 per barrel.
It was the news that US inventories of crude oil were lower than expected that sent the oil price to it’s record high this morning, however the rise in European interest rates will have an impact on trading when the markets open in the USA.
The prediction of crude costing $150 is now looking like a reality. It could happen this month. In fact I think it could happen by this time next week.
If the thought of oil costing $150 per barrel is not bad enough, I came across an article that explains why oil could be priced at $200 by Christmas. It’s a bit of a depressing read, however if oil does hit the $170 mark in the Autumn, as predicted by the president of OPEC recently, then unfortunately the $200 per barrel price may not seem as far fetched as most of us would like.