Economic Watch: New York oil prices break through all-time highs

BEIJING, March 4 (Xinhua Ming Jinwei) on the 3rd of this month, the New York Mercantile Exchange in April delivery of light crude oil futures prices rose to 103 per barrel$95After years of soaring, the price of oil in The New York market is not only a nominal record high, but has reached or even exceeded the historical real high in real dollar termsin 1980, the price of oil in the New York market reached $38 a barrel
taking into account inflation, if in today's dollars, the real record of oil prices in The New York market should be 10376 until the price was officially broken on the 3rdanalysts pointed out that the record high oil prices, with the international crude oil market supply and demand relationship is not much, mainly driven by the depreciation of the Dollar and geopolitical tensionsPhil Flynn, an analyst at Alaon Trading in Chicago,, said in an interview with the media that the sharp depreciation of the dollar was driving commodity prices, including crude oil futures, higherIn addition to oil prices, the prices of gold, copper and wheat on the international market have also risen as a result of the depreciation of the dollaron the New York foreign exchange market, the dollar has fallen 4 per cent against the euro since the beginning of the year and by 27 per cent against the euro since the beginning of 2006Moreover, the dollar has generally continued to depreciate against the pound, the yen and the Swiss francSince crude oil futures are traded in dollars on the international market, the depreciation of the dollar will increase the attractiveness of crude futures to investors holding other strong currencies on the one hand, and on the other hand, will also push some investors holding dollar assets to buy crude oil futures to avoid losses from the depreciation of the dollarIn addition, the turmoil in major financial markets around the world following last summer's full-scale US subprime crisis has prompted investors to buy relatively low-risk crude futuresthe current market expectations, the U.Seconomic outlook is uncertain, or even the possibility of a recession, coupled with the Federal Reserve is expected to further cut interest rates in the future to stimulate economic growth, so the dollar weakness is difficult to reverse in the short termMrFlynn predicted that there was no immediate sight of the ceiling for this round of oil price surges, as it would depend on how far the dollar would fallIn addition to the depreciation of the dollar, the Iranian nuclear issue, Turkey's entry into northern Iraq to fight PKK militants and the instability in the oil-producing areas of southern Nigeria are also important factors driving up oil pricesthe impact of high oil prices on the global economy is of greater concern after the record high price of oilHistorically, several sharp spikes in oil prices have had a more severe impact on the global economy and even plunged the economies of the west's major advanced economies into recession, the Us, the euro zone and Japan and other advanced western economies are now at risk of falling into recession, especially in the US, where economic growth has slowed sharply as a result of the US subprime crisisIn this context, the impact of high oil prices on consumption and inflation is noteworthyafter oil prices hit record highs, market analysts were divided over future oil price forecastsSome analysts believe that with the U.S., Europe and Japan and other major Western advanced economies economic slowdown, global demand for crude oil will be reduced, oil prices will eventually fallOil prices could eventually fall to $65 a barrel at $70 a barrel after the speculative bubble burst sourating in the international crude oil marketBut there are also those who believe that oil prices are likely to climb further to $120 a barrel this year amid speculation about the dollar's continued momentumBEIJING, March 4 (Xinhua Ming Jinwei) On the 3rd of this month, the New York Mercantile Exchange in April delivery of light crude oil futures prices rose to 103 per barrel$95After years of soaring, the price of oil in The New York market is not only a nominal record high, but has reached or even exceeded the historical real high in real dollar termsin 1980, the price of oil in the New York market reached $38 a barrel
taking into account inflation, if in today's dollars, the real record of oil prices in The New York market should be 103 76 until the price was officially broken on the 3rd analysts pointed out that the record high oil prices, with the international crude oil market supply and demand relationship is not much, mainly driven by the depreciation of the Dollar and geopolitical tensions Phil Flynn, an analyst at Alaon Trading in Chicago, , said in an interview with the media that the sharp depreciation of the dollar was driving commodity prices, including crude oil futures, higher In addition to oil prices, the prices of gold, copper and wheat on the international market have also risen as a result of the depreciation of the dollar on the New York foreign exchange market, the dollar has fallen 4 per cent against the euro since the beginning of the year and by 27 per cent against the euro since the beginning of 2006 Moreover, the dollar has generally continued to depreciate against the pound, the yen and the Swiss franc Since crude oil futures are traded in dollars on the international market, the depreciation of the dollar will increase the attractiveness of crude futures to investors holding other strong currencies on the one hand, and on the other hand, will also push some investors holding dollar assets to buy crude oil futures to avoid losses from the depreciation of the dollar In addition, the turmoil in major financial markets around the world following last summer's full-scale US subprime crisis has prompted investors to buy relatively low-risk crude futures the current market expectations, the U.S economic outlook is uncertain, or even the possibility of a recession, coupled with the Federal Reserve is expected to further cut interest rates in the future to stimulate economic growth, so the dollar weakness is difficult to reverse in the short term Mr Flynn predicted that there was no immediate sight of the ceiling for this round of oil price surges, as it would depend on how far the dollar would fall In addition to the depreciation of the dollar, the Iranian nuclear issue, Turkey's entry into northern Iraq to fight PKK militants and the instability in the oil-producing areas of southern Nigeria are also important factors driving up oil prices the impact of high oil prices on the global economy is of greater concern after the record high price of oil Historically, several sharp spikes in oil prices have had a more severe impact on the global economy and even plunged the economies of the west's major advanced economies into recession , the Us, the euro zone and Japan and other advanced western economies are now at risk of falling into recession, especially in the US, where economic growth has slowed sharply as a result of the US subprime crisis In this context, the impact of high oil prices on consumption and inflation is noteworthy after oil prices hit record highs, market analysts were divided over future oil price forecasts Some analysts believe that with the U.S., Europe and Japan and other major Western advanced economies economic slowdown, global demand for crude oil will be reduced, oil prices will eventually fall Oil prices could eventually fall to $65 a barrel at $70 a barrel after the speculative bubble burst sourating in the international crude oil market But there are also those who believe that oil prices are likely to climb further to $120 a barrel this year amid speculation about the dollar's continued momentum (name)