Another Day, Another Record: Oil Tops $135 a Barrel
By VOA News
22 May 2008
The price of crude oil hit another record high Thursday of more than $135 a barrel, fueled by worries about supplies and growing demand.
This is the second day in a row crude oil prices soared to new highs in trading in New York.
The price of crude oil came close to $134 (133.82) on Wednesday.
Oil prices have been buoyed by fears about production shortages around the world. And there are indications those shortages could becomes more severe.
A U.S. newspaper, The Wall Street Journal, reports the Paris-based International Energy Agency will predict oil companies may struggle to produce 100 million barrels a day by 2030. The agency had previously predicted oil production would reach 116 million barrels by that time.
The high fuel prices are prompting protests in nations as diverse as France and Indonesia. French fishermen clashed with police and blockaded ports, while Indonesians staged marches.
Indonesia's government says rising oil prices are forcing it to reduce the subsidies that have kept fuel prices artificially low. The change in policy will increase prices to consumers by nearly 29 percent. The government says it is working on a plan to ease the impact of the price increase on the poor.
The Organization of Petroleum Exporting Countries has said it will not produce more oil, blaming the rising price of oil on factors beyond its control.
Last week, during U.S. President George Bush's visit to Saudi Arabia, the Saudis said oil supply and demand are balanced. However, Saudi oil minister, Ali al-Naimi, said Riyadh has boosted crude-oil production this month by 300,000 barrels a day, an increase of more than three percent, to make up for declining production by Venezuela and Mexico.
Some information for this report was provided by AFP, AP and Reuters.
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