söndag 21 mars 2010

Global Oil Demand

IEA officials claim that "the market could easily become again more volatile once the world economy grows again and the supply tightens." They urged governments to open access to energy reserves, and said "encouraging investment on the production side could lessen volatility."

Northern Trust also issued a bullish report on the energy sector last month. They noted:

“We think energy prices, especially the price of oil, face a supply-constrained future. Already, the increase in prices had led to an OPEC quota compliance of just 60%, as the Saudis are sensitive to the risk that high oil prices pose to global economic growth. In a scenario where the global economy continues to accelerate and the dollar resumes its decline, energy prices could move significantly higher from current levels.”

On a like note Bank of America and Barclays Capital, two leading oil traders, have told clients to brace for crude above $100 a barrel by next year, before it pushes higher over the decade. This would be in stark contrast from recessions in the 1980s and 1990s, when it took years to work off excess production capacity built in the boom.

"The groundwork for the next sustained step up in oil prices is now almost complete. Global spare capacity is likely to be reduced to low levels within a relatively short time. The global economic crisis has postponed, but not cancelled, a crunch which would otherwise be starting to bite now," said Barclays.

Francisco Blanch, from Bank of America Merrill Lynch, said crude may touch $105 next year, with $150 in sight by 2014. "Approximately 1.7 billion consumers in emerging markets with a per capita income of $5,000 to $20,000 are eagerly waiting to buy cars, air-conditioning units, or white goods," he claims.
http://www.financialsense.com/fsu/editorials/dancy/2010/0316.html

Inga kommentarer: