WTI Prices Surge Above US$105 per barrel Despite easing global demand and the US economy on the brink of recession, West Texas Intermediate (WTI) futures finished above US$100 per barrel on February 19 and reached a record high of US$107.9 on March 10. Geopolitical instability in oil-producing countries has acted as a spur on prices in recent years, as have supply constraints, but it is speculative trading which lifted WTI over the past month. Many investors moved funds into commodities following the stock market crunch as a hedge against higher world inflation expectations and a weaker US$. The consensus predicts only a moderate fall-back in oil prices. OPEC kept output unchanged at its March 5 meeting and highlighted refining problems and extremely tight capacity as other major drivers behind the price surge.
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