Oil price rally to hit $40,000
Oil price rallied on Friday after the world’s largest producer of the chemical used to make citronella sold a record $10 billion of shares.
The price jumped about 40 per cent in a matter of minutes after the stock opened at $36 a barrel, according to Thomson Reuters data.
“I’m really excited to see how this oil will turn out,” said Brian Johnson, managing director at oil firm Noble Energy.
The US Energy Information Administration says the oil and gas industry lost about $1.1 trillion in the past year.
Citronella was invented in the late 19th century by Italian chemist Antonio Ciampi.
It is widely used as an antibacterial agent, and can be used in the production of perfumes and body sprays.
It also makes a chemical that can help to kill germs and is used in cosmetics.
Citronelle has been sold in Europe and Japan for a few years, but was recently made illegal in the US, Canada, and Mexico.
In a statement on Friday, Noble Energy said it expected “record” growth in demand for the chemical.
Citric acid is used as a preservative and an antioxidant.
It has been widely used to manufacture cosmetics.
Mr Johnson said he was surprised by the rally in oil prices.
“It was like the last bubble in the oil market,” he said.
“The market is now back to normal.
It was a big surprise.”
The US Federal Reserve will announce next week whether to increase interest rates on Tuesday, and the US economy may be heading into another recession.
The Citronlea rally came after the US government announced a major tax cut for corporations and households in February.
In January, US stocks fell to their lowest level in six years, with the Dow Jones index falling 4.6 per cent.
The Dow Jones has lost more than 1,000 points in a week.