World Oil Markets In Chaos

World oil markets are in a state of total chaos and this is nowhere more evident than in the United States. The price for West Texas Intermediate (WTI), a benchmark crude oil for the US, has shot up by nearly 100% in less than a year and a substantial portion of this increase has taken place over the last six months. WTI closed at $139.64/B on 26 June. It was trading at an average price of $29.07/B in the second quarter of 2003 and around $80/B at the end of last year. Some analysts are now projecting the price to rise to as high as $150/B by the end of the year.

The spike could not have come at a worse time. The US economy, facing one of its worse housing and financial crisis in generations, has been teetering on the verge of a severe recession since last August with no sign of a quick turnaround.

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