Oil prices in the world market rose to 10-month highs due to real signs that the global economy is well on its way to recovery. US light crude rose to $74.28 even reaching a high of $74.81 – its highest since October of last year.
Many countries have declared that they are out or coming out of recession. France and Germany have now recovered and UK officials said that they too are soon to be out of the crisis.
The oil price was primarily triggered by data indicating that demand rose for the European union in June. Aside from the Europeans, China also reported that its demand for oil is up 3.5% in July
Should we brace ourselves for $4 a gallon gas? It’s unlikely unless oil prices spike up back to the record high of $147 per barrel. However, in the year, the prices of oil in the world market have gone up 65% after falling to just $30 a barrel when the recession affected demand.
Source: BBC
