Oil Prices Increase

Although demand has not increased significantly, the price for a barrel of oil continues to hover above $60. Note, oil hit a recent low of $35 in March of 2008 (and a high in 2008 as well of over $145). Oil is a large cost factor in the production of paper; accordingly, a price increase in raw materials while finished paper products are offered at a discount, adds more profit pressure to those marginal mills.