Price records, violence and dollar weakness (the usual mix)

This section summarizes downstream developments of the previous month. Exploration & Production are covered in 'Upstream Review'.
Oil prices went to new record levels in mid-March as traders contemplated the usual mix of violence in Iraq and Nigeria along with a falling US dollar, allied in this instance with a rise in the gold price above $1,000 an ounce and the paradoxical combination of fears of a world recession and high demand for oil products. The result was WTI front-month futures at an intra-day high of $111.80/bbl on 17th March, following a record $110.30/bbl in the cash market for prompt barrels set four days earlier. The 13th of March also saw Dated North Sea at a record $108.93/bbl, with prompt Brent some $2/bbl above this level. OPEC's price-basket also rose above $100/bbl for the first time. Many product prices also moved into record territory, including an intra-day high of $3.22/gall for Nymex spot heating oil on 14th March. The increases proved too much in the end and crude markets were back below $100/bbl by the end of the month.