By the end of the first quarter of 2005, prices of crude oil exceeded the 57 U.S. dollars barrier per barrel. The average price of OPEC’s oil basket also went over US 50 dollars. These figures are record high, never witnessed by the contemporary oil history since many years. Oil prices this January increased due to fears from a cold spell in the United States after decline in temperature, coupled with anxiety from the upcoming OPEC meeting. Prices also increased supported by the growing oil demand in China, and fears that oil pipelines in   Iraq were exposed to more attacks by insurgents.