Oil Prices has been rising the past few years. Of which, this year has been of particular concern. This is because, in less than one year, crude oil prices more than doubled from below US$70 per barrel in January 2008, to US$145.27 on 03 July 2008. The reason for the explosive increase in oil prices are due to numerous reasons, ranging from inadequate supply, supply disruption, and even speculative trading.

Business must take note of oil pricing as it has the ability to affect its profitability and even cause business to fold if the business cannot manage its cost.

Attached below are the graphs taken from various sources, to showcase the speed at which oil has been rising. Business should take note of the rapidly rising price and should seek other alternatives for fuel as the price of crude oil is unlikely to drop below $120 in the near to medium future, with a continued rise in world demand for oil and with the OPEC countries unwilling to increase production.

Historical Oil Prices:

Source: WTRG Economics - Oil Price History and Analysis, http://www.wtrg.com/prices.htm

Oil Prices since 1990

Source: Bespoke Investment Group: Oil Price Chart Since 1990.

Oil Price in 2008