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13/09/2007 12:32
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Petroleum procurement costs are set to rise as the price of crude oil continues to hover close to the $80 (£39.48) per barrel mark, set yesterday.
According to the Washington Post, prices settled yesterday at $79.91 a barrel but Opec's announced increase in output has had a negligible effect on prices.
Many analysts have said that the extra 500,000 barrels per day confirmed by Opec would not be enough to outweigh concerns of hurricanes in the US possibly affecting supply in the Gulf.
Edward Morse, chief oil economist at Lehman Brothers, told the Washington Post that the Opec announcement would do little to ease rising costs of crude oil.
"There is realisation in the aftermath of the Opec meeting that Opec didn't do very much to temper tightening markets," he said.
He went on to suggest that the pressure on oil prices was also a likely result of the instability in US financial markets, as more investors move to commodity funds comprising largely of oil.
BBC News reports that oil prices have risen 30 per cent in 2007 and are four times the level set in 2002.
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