What is the average cost of a barrel of oil in 2008

The dollar rose slightly against the euro early Friday, but it is still near an all-time low versus the euro zone currency. A weaker dollar can push the price of oil higher as many investors buy oil to hedge against inflation. Also, the currency imbalance forces producers and traders to demand more in dollars for their oil in order to reflect its current value.

The dollar came under additional pressure earlier this week after the Federal Reserve decided to keep interest rates steady. The Fed's decision "means that the slow-growth, high-inflation environment is going to continue," said Tom Pawlicki, an analyst with MF Global in Chicago. Global politics: "Nigeria's production is down 1 million barrels a day, we had statements from the president of OPEC that spooked the market and there's tension between Israel and Iran," Carbone said.

Oil traders have been closely watching an ongoing situation in Nigeria - Africa's largest oil producer - where militant attacks and labor disputes have caused, or threatened to cause, supply disruptions. Heightened tensions between Israel and Iran are also supporting oil prices.

Pentagon officials said last week that a large-scale Israeli military exercise in the eastern Mediterranean early this month could have been a demonstration of Jerusalem's ability to attack Iranian nuclear facilities.

Iran is OPEC's second largest producer and traders worry that a military conflict there could disrupt shipping in the Strait of Hormuz, a key corridor for oil exporters in the Persian Gulf, and further restrict supply in the global oil market. This sudden surge drove up oil prices. This asset bubble soon spread to other commodities. Investor funds swamped wheat, gold, and other related futures markets.

It spiked food prices around the world. That created starvation and food riots in developing countries. Energy Information Administration. Organization of the Petroleum Exporting Countries. Accessed Sept. World Petroleum and Other Liquids Consumption. Federal Reserve Bank of St. Actively scan device characteristics for identification.

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Measure content performance. Develop and improve products. List of Partners vendors. By Kimberly Amadeo. Learn about our editorial policies. Reviewed by Thomas J. Article Reviewed May 20, Thomas J. There are additional costs to refine, transport, and sell gasoline at retail outlets. From there we see one of the sharpest drops in history. The last three U. Crude more than doubled between and before the economy fell into a recession in Demand for oil cratered as governments around the world shuttered businesses, issued stay-at-home mandates, and restricted travel.