China's demand for crude oil is being cited as a factor in driving oil prices to a historic new record today of $100 per barrel this morning in New York Stock Exchange (NYSE) trading.
Other factors include concern over falling energy reserves in the United States, unrest in Nigeria, which is Africa's biggest crude producer, and speculators gambling that oil prices will continue to rise.
China is second only to the United States in its oil consumption, using 7.6 million barrels a day. Chinese oil consumption is expected to increase, as more people are able to afford automobiles. The Chinese buy much of their oil from Africa, and also buy from Iran and Venezuela. Rising gasoline prices in the U.S. are cited as one of the reasons for the current recessionary environment.
This was the first day of 2008 trading at the NYSE. James Brock, of Cambridge Energy Consulting estimates that the actual fair market value of crude should be about $65 a barrel, according to a CNN International report. Meanwhile, other stocks declined, with the higher oil prices cited as a major factor.
In other economic news and as investors' concerns grew, gold hit a new high of $850 an ounce today.
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Oil Prices Hit $100 Per Barrel
