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2008-06-09

World will plunge into recession thanks to crude oil

It looks there is little doubt that crude oil prices would go past $150 per barrel soon. Iranian representative in the apex Organization of Petroleum Exporting Countries (OPEC) on Sunday warned that oil prices could touch $150.


World is looking eagerly as oil prices spiraled to touch $139 per barrelk last week. The skyrocketing prices of crude oil have forced consumers now believe that the commodity’s prices could hit $150 soon.


Crude oil leapt in reaction to a decline in the U.S. dollar after the European Central Bank on Thursday signalled an interest rate hike and the U.S. reported a sharp rise in unemployment on Friday, analysts said.


Compounding the dollar squeeze were reported remarks about Iran’s nuclear programme by Israeli Deputy Prime Minister Shaul Mofaz. Analysts said the comments fanned fears of a Middle East conflict.


On Sunday, Iran’s representative to the OPEC oil cartel warned the price of crude oil is set to rise even further to $150 a barrel by the end of summer.


Eleven nations that guzzle nearly two-thirds of the world’s energy called Sunday for an urgent hike in global oil production. Japan’s energy minister Akira Amari, who hosted their meeting, warned the world could plunge into recession.

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.