News / Economy

    Price of Oil Hits $100 a Barrel

    South Sudan army soldiers hold their weapons as they ride on a truck in Bor, Dec. 25, 2013.
    South Sudan army soldiers hold their weapons as they ride on a truck in Bor, Dec. 25, 2013.

    Multimedia

    Audio
    Joe DeCapua
    The price for a barrel of oil rose above $100 Friday amid concerns over instability in Libya and South Sudan, plus a growing U.S. demand for fuel.

    Fighting in South Sudan and erratic oil production in Libya are having a ripple effect on the global oil market.


    John Kingston, director of news for Platts, a leading energy information company, said, “The big, broad, fundamental picture does look like there’s more oil on the world [market] than is necessary. But you continue to have several hotspots that are keeping the market tight and keeping the market a little bit on edge. Libyan output’s been fluctuating. Sometimes it gets almost up to 500,000 barrels a day. Sometimes it’s closer to 100,000 barrels a day. But this is a country that should be producing about 1.5 -1.6-million barrels a day. Now you’ve got South Sudan, which is a relatively small producer, but again it could be a cutback in a market that does have a lot of these geo-political concerns.”

    Some of the fighting in South Sudan is in Unity State, which produces about 45,000 to 50,000 barrels a day. That’s out of a total output for South Sudan of 250,000 barrels a day. Kingston said that’s a relatively small output compared to other oil producing nations. Nevertheless, he said the combination of problems in the two countries has affected the market.

    “You’ve also got other things,” he said, “You’ve got rising interest rates, which tend to be a booster of commodities. U.S. demand is starting to show real signs of strength. It’s up about a million barrels a day – year on year – and the estimates now are that fourth quarter growth in GDP might be three to four percent, which is pretty strong. So, you throw all these together in this plunging market that everyone was talking about a few weeks ago, a month ago, it’s got too many things that are preventing it from plunging.”

    Kingston said that the oil market is not like the stock market, which can fluctuate wildly upon hearing rumors.

    “Any kind of commodity market – the net gain at the end of the day is zero. For every dollar made there’s a dollar lost. So that’s not the case in Wall Street. So, that’s why I always push back very hard in any kind of analogy to Wall Street. But certainly it’s not so much that there are rumors, there are real outages of supply. And even though if you sat down and did the percentages it would look really, really small, the fact is markets are not set by percentages they’re set on the margin. What is the competition for that last barrel of oil?”

    Kingston said that Platts will not predict how long the price of a barrel of oil may hover around the $100 level.

    You May Like

    S. African Farmer Goes From 'Voice in the Wilderness' to Sought-After Expert

    Margarest Roberts has authored more than 40 books on subjects like organic farming, urban agriculture, herbs and ‘superfoods'

    Millennial Men Prefer Bucks Over Beauty

    U.S. men aged 18 to 34 say the finances of a potential significant other are more important than her looks

    Multimedia Lebanese Clown Troupe Marks Valentine's Day Amid Stink

    Activists resort to unusual approaches to raise public awareness of country’s ongoing trash crisis

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Russia's Car Sales Shrink Overall, But Luxury and Economy Models See Growthi
    X
    February 10, 2016 5:54 AM
    Car sales in Russia dropped by more than a third in 2015 because of the country's economic woes. But, at the extreme ends of the car market, luxury vehicles and some economy brands are actually experiencing growth. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Russia's Car Sales Shrink Overall, But Luxury and Economy Models See Growth

    Car sales in Russia dropped by more than a third in 2015 because of the country's economic woes. But, at the extreme ends of the car market, luxury vehicles and some economy brands are actually experiencing growth. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Civil Rights Pioneer Remembers Struggle for Voting Rights

    February is Black History Month in the United States. The annual, month-long national observance pays tribute to important people and events that shaped the history of African Americans. VOA's Chris Simkins reports how one man fought against discrimination to help millions of blacks obtain the right to vote
    Video

    Video Jordanian Theater Group Stages Anti-Terrorism Message

    The lure of the self-styled “Islamic State” has many parents worried about their children who may be susceptible to the organization’s online propaganda. Dozens of Muslim communities in the Middle East are fighting back -- giving young adults alternatives to violence. One group in Jordan is using dramatic expression a send a family message. Mideast Broadcasting Network correspondent Haider Al Abdali shared this report with VOA. It’s narrated by Bronwyn Benito
    Video

    Video Migrant Crisis Fuels Debate Over Britain’s Future in EU

    The migrant crisis in Europe is fueling the debate in Britain ahead of a referendum on staying in the European Union that may be held this year. Prime Minister David Cameron warns that leaving the EU could lead to thousands more migrants arriving in the country. Meanwhile, tension is rising in Calais, France, where thousands of migrants are living in squalid camps. VOA's Henry Ridgwell reports.
    Video

    Video Valentine's Day Stinks for Lebanese Clowns

    This weekend, on Valentine's Day in Lebanon, love is not the only thing in the air. More than half a year after the country's trash crisis began, the stink of uncollected garbage remains on the streets. Step forward "Clown Me In," a group of clowns who use their skills for activism. Before the most romantic day of the year the clowns have released their unusual take on love in Lebanon -- in a bid to keep the pressure up and get the trash off the streets. John Owens reports from Beirut.
    Video

    Video Families Flee Aleppo for Kurdish Regions in Syria

    Not all who flee the fighting in Aleppo are trying to cross the border into Turkey. A VOA reporter caught up with several families heading for Kurdish-held areas of northern Syria.
    Video

    Video Rocky Year Ahead for Nigeria Amid Oil Price Crash

    The global fall in the price of oil has rattled the economies of many petroleum exporters, and Africa’s oil king Nigeria is no exception. As Chris Stein reports from Lagos, analysts are predicting a rough year ahead for the continent’s top producer of crude.
    Video

    Video 'No Means No' Program Targets Sexual Violence in Kenya

    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video Chocolate Lovers Get a Sweet History Lesson

    Observed in many countries around the world, Valentine’s Day is sometimes celebrated with chocolate festivals. But at a festival near Washington, the visitors experience a bit more than a sugar rush. They go on a sweet journey through history. VOA’s June Soh takes us to the festival.
    Video

    Video 'Smart' Bandages Could Heal Wounds More Quickly

    Simple bandages are usually seen as the first line of attack in healing small to moderate wounds and burns. But scientists say new synthetic materials with embedded microsensors could turn bandages into a much more valuable tool for emergency physicians. VOA’s George Putic reports.
    Video

    Video Researchers Use 3-D Printer to Produce Transplantable Body Parts

    Human organ transplants have become fairly common around the world in the past few decades. Researchers at various universities are coordinating their efforts to find solutions -- including teams at the University of Pennsylvania and Rice University in Houston that are experimenting with a 3-D printer -- to make blood vessels and other structures for implant. As VOA’s Greg Flakus reports from Houston, they are also using these artificial body parts to seek ways of defeating cancerous tumors.
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.

    World Currencies

    EUR
    USD
    0.8899
    JPY
    USD
    114.87
    GBP
    USD
    0.6937
    CAD
    USD
    1.3904
    INR
    USD
    68.044

    Rates may not be current.