Crude oil inches closer to $ 100 a barrel
Crude prices set a new record high of $88 a barrel having risen by
eight dollars in two weeks in what traders attributed to tensions in
northern Iraq and strong demand in America.
At $88, crude price is edging towards the $100 mark that analysts,
led by investment firm Goldman Sachs, had earlier predicted it would hit
The latest adjustment came only a few days after Jacob Segman, the
managing director at oil marketing firm Kenol/Kobil, warned consumers to
brace for further price increases due to continued rise in crude prices.
“Consumers should brace for further price increases, they can only
reduce if crude prices fall,” Segman said. He added that the sharp rise
in freight costs would also put an additional strain on pump pricing..
Kenya Shell reckons that the current crude prices are yet to reflect
at the local pump stations but that it could happen in the next few
“We are monitoring how crude prices will go, and we will definitely
move along with it,” says Mwaura Ngaari, the external affairs manager at
Oil marketers say the current pump prices are based on crude prices
bought in September when the average cost stood at below $77 per barrel,
suggesting that the next load would come at a higher price.
Oil marketers tender monthly for oil importation in a system dubbed
Open Tender System (OTS), where one marketer imports crude oil, which is
only enough to last a month.