Oil barrel price to stay around US$100
According to Kuwaiti analyst, Mohamed Al-Shatti, oil prices will not drop below $100 per barrel in the coming period. In fact, he said, oil prices may flirt with a $110 ceiling per barrel.
“My estimations are based on many factors, the most important of which is seasonal as demand for heating oil will increase significantly during this winter”, Al-Shatti said.
He added that this seasonal high oil demand comes in the midst of a drop in fuel oil reserves in Europe and the US, along with fears surrounding the rise in tension from Iran’s nuclear program. “Any attacks on Iran could affect oil supplies” he stated.
He downplayed the effects of the sovereign debt crises in Italy and Greece due to immediate and serious attempts to resolve the crises.
Another factor which led to the rise in oil prices is the weak supply of light crude. Light crude is in high demand during winter, however North Sea oil rigs, which provide the world with Brent Crude, continue to witness spills, as recently as last August.
Al-Shatti added that indications of China’s dropping inflation rates would enhance prospects of the world’s second largest economy achieving higher growth, thus leading to higher oil demand.
The Asian continent, he added, was a ruling factor at the current stage, in relation to its increasing demand for crude. China’s largest refinery plans to increase its consumption of oil in order to meet the country’s Diesel fuel needs.
During their coming meeting in Vienna in December, OPEC ministers are expected to evaluate oil market outlooks for the first quarter of 2012. (Source: www.yallafinance.com)
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge
- OPEC'S export capacity to fall - Driving oil prices to US$100 barrel in 2008, forecasts leading oil economist at global energy conference
- Amid Egypt revolt: Oil prices above US$100 per barrel
- Saudi economy to grow in 2012, despite global uncertainties, says Emirates NBD Private Banking
- OPEC daily basket price edges up on Monday