The Crude Oil set new record breaking for first time the psychological level of $140 per barrel. The new oil jump was caused by warns that Libya will cut the output. Libya want United States with the oil weapon due too the continue problems with the terrorist attack victims compensations.
The OPEC president Chakib Khelil forecast that the Oil prices will reach $170 by the summer and the dollar weakened. The high oil prices will push the inflation in United States and Euro Zone where will be necessary to start with the interest rates rise.
Scott Brown energy expert in World-Signals.com confirm the OPEC president forecast and add that on the market the Crude Oil will break above $200 in October-November 2008. He also said that at the end of the year the Crude Oil prices might touch $250.
In this situation in the Euro Zone the inflation for 2008 will reach to 7% said George Marshal Forex analyzer in World-Signals.com. With such inflation the Euro Zone will fall into deep crisis and will be necessary strong interest rates rise.