Oil Prices Hit New High

The price of oil has now hit around $72 per barrel which provides additional confidence in the hope of economic recovery thanks to re-invigorated growth in the oil industry.

US Crude oil took its highest rise recently, seeing its seven-month high oil price of $71.79. This was followed by a minor drop as prices fell a few levels finding support at $71.33. This growth in prices has beaten all forecasts which provides for some confidence in the fact that the global recession may be over.

In the past seven years, oil prices have rose on average, with the only period of uncertainty being in the final quarter of 2008. This saw the price of oil eventually slowing and subsequently dropping. Recent economic growth has been seen in major world economies and is the conclusion of trillions of dollars of spending by world governments which has been in the bid to try and save the failing financial system and avoid total economic collapse. This oil growth is also bringing about positive business and an increased consumer confidence rate.

The economic crisis brought the first slump in oil use since 1993, which whilst industry officials saw average oil prices rising, during the last three months of the financial quarter a 70% drop in prices was noticed, due to the financial crisis and a fall in oil consumption of over 6.4% in the US alone.

Today’s recent oil-highs are evidence of reinvigorated growth and whilst they are nowhere near the peaks of last July, they have beat US Energy Department predictions which forecasted that the oil prices would only average $67 a barrel after the second half of 2009. Economically speaking, this rise has brought about new confidence in world economy and looks set to bring a great deal of hope to the much troubled financial markets.

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