Venezuelan strikes main cause of high oil price

High oil prices are expected to continue through 2003, reflecting the threat of not only a war in I...

High oil prices are expected to continue through 2003, reflecting the threat of not only a war in Iraq but other factors such as ongoing disruptions in Venezuela. Stephen Strongin, head of commodities research at Goldman Sachs, notes there is a widespread view that oil prices will retreat later this year even without a serious disruption to supply or demand. He disagrees and feels this view assumes a conflict with Iraq would play out along the lines of the 1991 Gulf war, during which oil prices spiked briefly and then collapsed. Strongin says the protest by many companies aga...