Whither now for oil prices?

[Maine]

Here is a good source of such information (compiled from EIA reports):

http://omrpublic.iea.org/World/Wb_all.pdf

Certainly a lot tighter than 1.5 million barrels a day at the moment. Although I think forecasted 2007 demand will be revised down from 85.7 to closer to 83 mbpd in line with GDP revisions in the US.



Both demand and supply are growing. It's just a question of which is growing faster. Also I do not see why refinery problems (responsible for current high gasoline prices) necessarily translate to higher oil prices? If the omelette factory in a town burns down, will people automatically pay more for their eggs at the market?

What was the IEA trying to do by releasing its report on supply tightness? Its one thing to say it when oil is $ 40 a barrel but over $75 !!

What agenda is being driven and who is doing the driving

 

[redstar]

What is driving petrol prices upwards ?

Now petrol prices are at 1.64 and rising weekly, what is driving this ?
Its not taxation because the prices are creeping upwards steadily.

Are there any signs that it will stop rising or even fall ?

Strange that prices are increasing in a recession.

 

[allie12]

Now petrol prices are at 1.64 and rising weekly, what is driving this ?
Its not taxation because the prices are creeping upwards steadily.

Are there any signs that it will stop rising or even fall ?

Strange that prices are increasing in a recession.

I wouldbe interested to know- as this is drivingup all costs of living at a time when people are strapped for cash. Are we going to hit the €2......?

 

[PolkaDot]

I am also a bit puzzled about the continued increases in prices.

The Euro's fall against the USD between Oct to Jan was stated as being a factor, but it has recovered somewhat against the Dollar since then.

So this doesn't seem to have much of an influence?

 

[theoneill]

It's probably just a mixture of demand, speculation and supply. I hear at current levels of consumption we would need at least three earth's to sustain us. This cannot continue. back in the day it was really only the west that were the largest consumers of oil, now it's basically the entire world with the exception of parts of Africa and other smaller regions. You also have to consider that most of the oil comes from politically unstable regions. It really is a toxic mix.

 

[Chris]

Production of oil in recent years is pretty flat and consumption declines in the western world have been offset by increases in Asia. By and large though, supply of and demand for oil in barrels per day is pretty much unchanged. The only explanation left is inflation. Central banks around the world have flooded the system with newly printed money for the last 4 years now. You basically have more money chasing the same amount of oil and that is driving up prices.