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DateLine Sunday, 25 May 2008





Marriage Proposals
Government Gazette

Crude oil prices hit new peaks

Motorists keep their fingers crossed anticipating a sharp rise in CPC fuel prices

Crude oil prices reached new peaks on three consecutive days last week and hit $135 a barrel on Thursday as investors worry over long-term supply constraints and a big drop in US crude stocks.

Following the crude price increase LIOC increased diesel by Rs. 20 a litre and CPC sources said that it is also considering a price increase and awaiting recommendations from the special committee appointed by President Mahinda Rajapaksa to study the price revision. Reuter reported that the main reason for the crude oil price increase is declining US crude stocks.

US weekly data showed that crude oil stocks had declined by 5.4 million barrels and analysts had anticipated a price increase.

Analysts expect further increases in oil prices as the market is in a bullish mode.

The US has repeatedly called upon the Organisation of Petroleum Exporting Countries (OPEC) to increase its output to calm markets. Saudi Arabia last week said it had raised production by 300,000 barrels per day, but this had a minimal impact on the market.

However, OPEC said that factors for the soaring oil price are beyond its control. Analysts said the weakening dollar is the major factor for the price increase.

People expect a huge increase in bus fares and a price increase of all commodities after the CPC announced its price revision over the weekend.


Gamin Gamata - Presidential Community & Welfare Service
Ceylinco Banyan Villas
Mount View Residencies

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