Crude 'above $40 through 2005'
Crude oil prices hit $53 per barrel on Friday, which are unlikely to fall below $40 until 2005, according to the U.S. energy department. Oil inventories in the U.S. are now below normal. Below normal oil inventories are expanding global demand. WTI prices are not likely to fall below $40 until 2005. Oil is expected to rise 3.3% in 2004 to 2.6% in 2005. Sheik Ahmed Fahd Al Sabah, Kuwaits energy minister said psychological factors are the problems and not supply and demand. He also says "OPEC has moved to assure the market by deciding [last month] to hike output by 1 million bpd." He suggested that countries such as the U.S. could help oil prices by cutting down on energy taxes.
2 Comments:
At 9:38 AM, Locan said…
I believe that this is a good article, but in the long run nothing will come of complaining over the price of oil. Yes, oil is rising and it always will, I believe. The problem is how much and how fast will it rise.
At 2:36 PM, Ben said…
Well, if indeed oil prices do continue to rise (and we all know they will), and gasoline become more and more expensive, then in that event, there will HAVE to be an alternative. I know it already costs me about 7 more dollars to fill up my vehicle as it did when I turned 16. And that was 7 years ago. And I know diesel prices are the highest of all right now, but there is a new diesel product that uses soybean oil that could change things for the now standard diesel product. The new diesel is better on the economy, although slightly higher in price; however, if enough people, i.e., truckers, etc., will by the new soybean oil based diesel, then the price of the stantard diesel will have nowhere to go but down. I trust that suppy and demand will take care of the issue.
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