ECONOMICS REPORT - Oil Prices

ECONOMICS REPORT - Oil Prices
By Mario Ritter

Broadcast: Friday, August 20, 2004

This is Gwen Outen with the VOA Special English Economics Report.

In terms of dollar value, of all the products in the world, nothing is traded more than oil. Crude oil traded above forty-seven dollars a barrel for the first time this week. The price a year ago was around thirty dollars. Crude can be made into gasoline or other products.

Oil prices are high. But the United States Energy Department notes that they are not the highest ever if inflation is considered. It says a barrel of oil in March of nineteen eighty-one would have cost eighty dollars today.

Prices are high in part because of concerns about problems in some oil-producing areas. Rebels in Iraq have attacked oil fields. In Russia, a huge tax debt threatens the future of Yukos, the largest Russian oil company. And in Venezuela, opponents tried but failed this week to oust¹ President Hugo Chavez in a national vote.

But world oil supplies were already limited because of demand. For example, economic growth has made China into the second largest oil user after the United States.

On August fourth, the Organization of Petroleum² Exporting Countries again voted to increase production. OPEC produces about one-third of the world's oil. Many other countries are also producing more. But experts say except for Saudi Arabia, world oil production has little surplus for immediate³ growth. Saudi Arabia is the largest oil exporter.

The International Energy Agency says the world oil supply reached eighty-three point five million barrels per day in July. But the agency expects the growth in demand for oil to slow next year. The current levels of growth are unusually high.

A barrel of oil contains one hundred fifty-nine liters. Oil is traded only in American dollars, but there are different kinds of oil. The highest prices are for West Texas Intermediate. Brent Blend is a mix of European oils; it usually costs a few dollars less. OPEC oil prices are lower still.

Prices reported in the news are generally for future shipments of crude oil. The New York Mercantile Exchange is the biggest energy exchange in the world. Twenty-one years ago, it began to trade in crude oil futures⁴.

These financial tools usually do not involve real sales of oil. But they can affect the prices paid at the time oil is shipped. Futures help buyers and sellers gain from, or protect against, any changes in the market.

This VOA Special English Economics Report was written by Mario Ritter. This is Gwen Outen.

1 oust   

vt.剥夺，取代，驱逐

参考例句：

• The committee wanted to oust him from the union.委员会想把他从工会中驱逐出去。
• The leaders have been ousted from power by nationalists.这些领导人被民族主义者赶下了台。

2 petroleum   

n.原油，石油

参考例句：

• The Government of Iran advanced the price of petroleum last week.上星期伊朗政府提高了石油价格。
• The purpose of oil refinery is to refine crude petroleum.炼油厂的主要工作是提炼原油。

3 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。

4 futures   

n.期货，期货交易

参考例句：

• He continued his operations in cotton futures.他继续进行棉花期货交易。
• Cotton futures are selling at high prices.棉花期货交易的卖价是很高的。