Oil prices briefly struck fresh record highs above US$142 on Friday as the US dollar remained weak, and as world stock markets tumbled amid economic jitters marking the end of a volatile week.
The jump in oil prices, which have doubled in the past year, has triggered inflation fears and worries in the US that already lackluster economic growth could be crimped further.
New York’s main oil futures contract, light sweet crude for August delivery, closed up US$0.57 at US$140.21 a barrel, marking a record finish.
The contract had earlier struck an all-time intraday price peak of US$142.99.
The picture was similar on the other side of the Atlantic as a key London contract, Brent North Sea crude for August delivery, rose US$0.48 to settle at an all-time closing peak of US$140.31.
Brent had earlier streaked to a record US$142.97 in frenzied intraday trading.
OPEC’s president predicted on Thursday that already red hot oil prices could reach US$170 this year because of the weak dollar and geopolitical unrest.
“Crude oil futures made fresh record highs, with higher oil prices fueling inflationary fears and thus hurting stock markets, which in turn triggered a further rally in commodities as investors seek better returns,” Sucden analyst Michael Davies said.
The ailing dollar has fueled demand for oil, which is priced in dollars, from traders holding stronger currencies.
Prices “continued to be buoyed by the dollar as the greenback continues its free fall descent this week,” Davies said.
Crude futures crossed US$140 for the first time on Thursday following the price forecast made by OPEC’s president, Algerian Energy Minister Chakib Khelil, in an interview with the France 24 news channel.
Consumers have blamed the months-long surge in oil prices on insufficient output from OPEC.
OPEC, which produces 40 percent of the world’s oil, argues that speculators are responsible for pushing up prices while analysts say that tensions in oil-producing countries, such as Iran, Iraq and Nigeria, have also stocked prices.
In a volatile trading week, prices had closed down US$3.50 on Wednesday after a government survey revealed an unexpected rise in stockpiles in the US, the world’s biggest energy consumer.
The US Department of Energy said crude stockpiles had risen for the first time in six weeks, by 800,000 barrels, in the week to June 20. Analysts had expected a drop of 1.1 million barrels.
Oil prices had rallied at the start of the week after major energy producers ruled out significant output increases.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS