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
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
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