The good news is the global economy is showing gradual signs of improvement and finally a forecast of hope. The bad news is, after a relatively bearable two years at the pump, crude oils prices are on the rise again. For the past two months the price of crude oil has risen steadily and has jumped about twenty five percent just since this February. The price now tops $85 per barrel and seems to be well on its way to $100 per barrel in the near future.

The Good With The Bad

Top financial analysts are attributing the rise in oil prices to what is being seen as good signs toward a global economic recovery. This in turn leads to an increase in demand for oil as consumers have more disposable income, and businesses start to see profits again. If U.S. unemployment figures continue to look better and better, the price of oil will steadily rise, on its way to the $100 mark. That price has not been in seen in almost two years.

Supply And Demand

The crude oil market is a fickle one built on weak fundamentals. The sense of a forthcoming economic recovery won’t always be enough to determine the price. The law of supply and demand will eventually take over, stabilizing the price to some degree. Oil producing nations as well as OPEC are the key players in setting crude oil prices. The price has to be such that a profit can be made, but not so high that demand plummets. OPEC has made it clear recently that crude oil prices in the $70-80 per barrel range are what they would like to see. Crude oil prices have reached a near two year high and are gradually creeping toward the $100 mark. Luckily it doesn’t seem to be something consumers, oil producing nations, or manufacturers want.