Oil prices continue to break records

| 4/24/2006

While oil prices continue to rise, at least one man thinks the trend won’t continue for long – if international tensions decrease and refining capacity increases.

Light, sweet crude hit an intra day high of $75.35 on the New York Mercantile Exchange on Monday, April 24, before dropping down to $73.90 later in the day.

Meanwhile, Edmund Maduabebe Daukoru, president of the Organization of Petroleum Exporting Countries, said on April 23 that prices would fall as political tensions begin to ease.

The Associated Press reported that Daukoru, who is also Nigeria’s oil minister, made the comments on Sunday at an International Energy Forum.

Daukoru said that the key to lowering oil prices is to calm the international environment and boost refining capacity, according to The AP. Increasing output, he said, would only further clog the market.

“If we do the right things by lowering international tensions, oil prices will definitely stabilize,” he said.

Ironically, tension and fighting in Daukoru’s own country of Nigeria has been cited as one of the primary reasons for the increase in oil prices.

Reuters reported that analysts are saying the situation in Nigeria, combined with tensions in Iran, the ongoing war in Iraq and increased demand from China and India, have all contributed to skyrocketing prices.