As crude prices keep inching upward, the threat to both the U.S. and global economy is clear. While OPEC says don't blame us, the Interational Energy Agencys says: "This is a wake-up call to the oil-consuming countries and to the oil producers."
Oil prices touched a two-year high Monday on tighter inventory and expectations that a U.S. economic growth spurt will boost demand this year. Some analysts predict prices could soon gush to $100 per barrel.
Lower U.S. petroleum inventory and higher demand pushed oil prices past the $90-a-barrel mark Wednesday. Gasoline prices remain near $3 per gallon as a result.
The price per gallon for gasoline is at the second-lowest level in five years, and some economists predict it could drop much further soon. The reason: More-than-ample inventories of crude oil and refined petroleum products.
Does BP's selling of several legacy assets mean the beginning of the end for the oil giant? No, says one observer. It frees up cash for oil-spill cleanup and gives Apache assets not connected to the politically toxic world of offshore drilling.
In its first detailed assessment of 2011, the International Energy Agency says that it expects world oil demand to rise 1.6% next year. The agency left its 2010 forecast largely unchanged.
