Oil hits $100 per barrel

Supply and demand of oil has forced the price to $100 per barrel for the first time. Second only to the US, China has increased its reliance on oil over the last few years. In 2007 demand increased by 5.7%. They import from Venezuala, Iran and South Africa, but they are already looking at other countries to supply their increasing energy hungry economy. The underlying price should be $60 to $70 per barrel according to experts, but speculation has driven prices up. And it is at the pump where most people feel the effects. In the UK the litre price has already reached £1.08 in many places. This is around $8 per gallon, well above what US consumers pay to fill their gas-guzzling SUVs.
The increased price also affected stock markets with the Dow Jones, Nasdaq, FTSE and CAC all dropping at the end of trade today. The oil price did droop slightly by the end of the day, but the future does not look promising, both for the motorist or the world economy as a whole [CNN / BBC].