This is part of the reason:
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India announced increases that, for example, would boost gasoline prices in New Delhi by 11 percent. Malaysia said it would hike gasoline prices by 41 percent and electricity for commercial and industrial users by 26 percent.
Indonesia and Taiwan, among others, have taken similar steps in recent weeks.
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http://ap.google.com/article/ALeqM5i...BB-tAD913RA6O0
A lot of Asian countries had quite high fuel subsidies, which naturally increases demand. If their prices go up, demand reduces and the oil price should reduce (it already has, quite a bit). A mate in the oil industry reckons that something odd has happened, since there's not really an actual shortage*, certainly not at $100/barrel+.
Another thing is that the pound has fallen against the dollar, which will tend to reduce the effect of the fall in oil price. It cushioned us when the dollar was dropping, of course, so it's swings and roundabouts.
Quote:
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A weakening dollar can spur investors to buy oil and other commodities as a hedge against inflation, but the effect tends to reverse when the dollar strengthens. A stronger dollar also makes oil more expensive to buyers dealing in other currencies.
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* Of course, there's a shortage if you're only prepared to pay $50 a barrel...