Oil

With the recent oil price highs comes consequences... Higher Prices for Airline Tickets

Soaring oil prices over the past few weeks are set to escalte Australian Petrol Prices, set to hit $1.50 in the next few months

Petrol prices are tipped to return to $1.30 a litre as the Australian dollar loses value as a result of the rising US interest rates. The Aussie has LOST about 3 cents in a little over a fortnight. Watch out for all imported goods to rise too... on the flip side exporters are celebrating, particularly those in the mining sector. Oil is currently around $66 a barrel, it was around $58 a barrel just a few weeks ago.

With the fall in Oil and Gold recently some traders have probably undertaken some profit taking strategies. There is still Hope for the Resources sector - the fall was governed by no more than "Fear" and "Greed". There may be more volatility in the forthcoming market sessions with fingers pointing to an amount of speculative money that was driving up oil, gold and base metals prices in the beginning of 2006. GSJB Were reckons not to lose hope on the resources sector.

Yes! Book your Road Trips Now. Oil prices have fallen sharply overnight as market traders' concerns eased over the stalemate over Iran's nuclear energy program and the market is awaiting US supply data. New York light sweet crude (delivery March '06) fell $US2.02 to close at $US63.00 per barrel. In London, the price of Brent North Sea crude for March delivery dropped $US1.77 to $US61.56 per barrel in closing trade. Worries of supply disruption have eased but still not dismissed - if ever the situation escalates quickly, expect the oil prices to jump.

Oil Prices rose to a 3 month highs in London and New York each market quoting a price over $US 64 and $US 65 respectively because of rising geopolitical tensions in Iran and Nigeria.

New York's main contract, light sweet crude for delivery in February, jumped $US1.46 to $US65.38 per barrel in electronic dealing. It had earlier climbed to $US65.53 - the highest since October 3, 2005.

In London, the price of Brent North Sea crude for March delivery rose US95¢ to $US64.13 per barrel. The February contract had expired on Monday at $US62.93 per barrel.

World oil prices surged to the highest levels in almost three months after Russia's energy row with neighbour Ukraine disrupted gas supplies across Europe, hit also by cold weather.

New York's main contract, light sweet crude for delivery in February, rocketed $US1.96 to $US63 per barrel in pit deals, compared with Friday's close before the long New Year holiday weekend.

OPEC members gathering in Kuwait overnight looked poised to hold their production quotas, but pressure was growing for another meeting next month to address an expected drop in demand for oil.

Ministers from the 11-nation Organisation of the Petroleum Exporting Countries meet on Monday in Kuwait City, where they are expected to maintain the quota of 28 million barrels per day (bpd).

Opinions are split however on whether OPEC should renew a pledge to make an extra two million bpd available to the oil market for another three months.