Today the oil prices touched their new high point of $103 due to the concerns about the American economy. Investors are pouring in their money in the commodities market after the major decrease in the interest rates by the US Fed. The increasing oil prices will have a major impact on Pakistan economy which heavily imports oil to satisfy its local demands. The thermal sources of electricity will also be affected by it and might make their continuous working uneconomic. Since increase in transportation costs contributes towards the overall inflation in the society, therefore every strata of the society will be affected by it. It is high time for Pakistan to look towards the other sources of producing energy and to fast develop the new oil wells, gas fields and coal mines.

Light, sweet crude for April delivery jumped to a new trading record of US$103.05 a barrel in Asian electronic trading on the New York Mercantile Exchange before slipping back to US$102.92 a barrel,up 33 cents. On Thursday, the contract jumped US$2.95 to settle at a recordUS$102.59 a barrel.
Shum warned that a price bubble was emerging in the crude futures market as investors ignored market fundamentals that have shown continuous increases in U.S. crude supply while several recent forecasters have lowered oil demand growth predictions for this year due to the slowing economy.

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