The media often talk about oil prices have risen due to speculators driving the price. I think oil is undervalued and has more than $ 100 per barrel by the end of the decade. Liena why.
Inflation
If the money supply twice the price of oil will double. The Federal Reserve is likely to increase the money supply greatly alleviate the suffering housing market. With a national debt of $ 9 million from the Fed probably have to pay the inflated invoices ITA. They also have excess money available for retirement of baby boomers beginning in 2008. Inflation factors probably only could push oil to $ 100 a barrel.
Porcelain and India
China and India continue to grow the aspiration of many resources, including energy. In the absence of signs of slowing down more than 2 million people consume more oil. This will reduce the supply and demand increases, both so that probably could push oil to $ 100 per barrel by the end of the decade.
The disruption in the Middle East
The Middle East produces enormous amounts of oil. Whenever a war breaks out or there is no conflict in the region the price of oil leaps. All you have to do is listening to people talk Political and you can form the impression that the interference in the Middle – East is not stopped soon. There are at least three conflicts in the Middle East, Afghanistan, Iraq and Lebanon. The continuation of these conflicts could push oil to $ 100, without the inconvenience of future conflict that involves Iran and Syria.
Peak Oil
Peak oil is the theory that world oil production can not sustain its growth and begin to decline. When you look at United's history, stasis oil production, peak oil becomes a theory. Existing wells in the world are becoming age, leading many experts believe they can expect less production of older wells. New production does not look much more promising. Many new discoveries are small and are located in places that are expensive to put into production. Peak oil paints a bleak picture for the price of oil.
The Commodity Bull Market
Raw materials are currently in a long term bull market. Commodities that have nothing to enhance the to see a price increase, as the technology courses were questionable companies during the tech bubble. Even if oil was a somewhat dubious (not that ITA) oil to remain at a low price would be unlikely. The fact that we are in a commodity bubble could easily bring the price of oil exceeds $ 100.
Other factors
Other factors such as weather, oil cartels, and government regulations plays a huge role in oil prices. That could take the oil industry a few years to recover from a bad hurricane season not to mention threats of production cuts of OPEC in the making (or threats of communist Chavez, the dog barking). The new higher taxes, needs and other interference can also cause problems industry to make oil prices.
Importance oil
The oil is directly or indirectly related to each product and business around the world. Oil is the way that all vessels owned by us. A high oil prices can wreak havoc on the economy. Probably why the media Traditional media still provides that the price of oil is falling. Oil will not be in double digits for long. In 2010 oil could easily be $ 150 – $ 200 a barrel. I'm curious if the media say the ITA, due to above reasons, speculators driving or price.
Israel: Christians Caught in the Crossfire
|
|
Lebanon Internet and E-commerce Investment and Business Guide: Regulations and Opportunities $99.95 … |
|
|
SYRIA: Construction contract award for planned $28,000,000 foreign affairs complex, ARABIAN CONSTRUCION CO. (ACC) [Lebanon] – Order #: 093603.: An article … Opportunities in Africa & the Middle East $5.95 This digital document is an article from WWP-Business Opportunities in Africa & the Middle East, published by Worldwide Projects, Inc. on September 1, 2003. The length of the article is 770 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it wit… |
|
|
Lebanon Internet and E-Commerce Investment and Business Guide: Regulations and Opportunities $99.95 Lebanon Internet and E-Commerce Investment and Business Guide: Regulations and Opportunities… |
Related posts:
Comments on this entry are closed.