Thursday, August 7, 2008

Oil Fluctuates on Slowing Demand, Attack on Turkish Pipeline

Oil continued its recent swing as opposing news stories had it going up and down.

On the one hand the price surged to $121 a barrel when news of the attack on the Turkish-based Baku-Tbilisi-Ceyhan pipeline, earlier in the day, by the PKK (separatist group Kurdistan Workers' Party), caused the upswing. It's estimated the pipeline could be closed for up to 15 days.

The other factor continues to be the cutting back on fuel use, as Americans continue to travel less during the summer months.

Residual effects of the drop in oil prices is also showing up at the gas pumps as overnight prices fell by a little over a penny to a national average of $3.849 a gallon; about 6 percent off it's highs last month of over $4 a gallon.

In afternoon trading, light, sweet crude rose by 21 cents to $188.79 a barrel on the NYMEX for September delivery, while Brent crude in London increased by 16 cents to $117.16 a barrel.

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