by Gabriel Andre on September 11, 2008
Oil is trading now just above $100, which is broadly a 30% decrease since the highs posted recently on July 11.
The price action fell back below the symbolic level of $100 a barrel 2 days ago but rose yesterday after OPEC meeting in Vienna. The organization agreed to adapt quotas for a total production limit of 28.8 million barrels a day, which will lead to a supply reduction of 500,000 barrels a day. This announcement has been considered therefore slightly bullish by the market.
However the major trend in place remains bearish as high prices and slowing global economic growth have been reducing demand for fuels.
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by Kris Sayce on September 2, 2008
But a look at the statistics from the International Energy Agency (IEA) tells us that there isn’t exactly a big buffer between the amount supplied and the amount demanded.
As this chart shows us, in 2007, total world supply of oil and oil-like products was 85.6 million barrels per day…
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by Kris Sayce on August 28, 2008
Energy prices wouldn’t be dampened by the prospect of a return to Cold War hostilities between Russia and the West.
The Australian newspaper reports that President Medvedev told anyone that would listen that Russia is “…not afraid of anything, including the prospect of a Cold War.”
If that doesn’t help to keep crude oil priced well above USD$100 a barrel we’re not sure what will.
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