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Categorie: Commodities
Submitted 4 months ago by

Ziad , President & CEO at Blackhawk Partners, Inc

Morning folksHope you all had a great 4th of July celebrationComing to the serious stuff, I personally think the price of crude oil to continue to climb — reaching upwards of $200 per barrel — and for prices at the pump to reach $5.75 per gallon within the next two years, if not higher . With the growth of crude oil supply “constrained,” prices inevitably will rise further as I am afraid spare capacity throughout the energy complex seems very limited, whether for OPEC crude oil, natural gas, or refining. It is a fact that in all of those areas, capacity is limited. And it’s getting very difficult for companies and countries to boost supplies — something that has become increasingly apparent to us over the first half of this decade.Add to the fact that the oil industries in some oil-producing countries, like Mexico, are in decline, and other sources of oil, like the North Sea, are now “mature.” There are other problems as well. The places that have large quantities of recoverable oil, notably Saudi Arabia, Iraq, Iran, Venezuela, and Russia, aren’t on track to grow their supply aggressively. It’s growing at a very moderate rate. What’s more, the currently high prices of gas are creating economic disincentives for those countries to spend more money to expand capacity. I strongly believe the price of oil ... More...

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#1 | Liz @ 4 months ago User Rank : 662 Portfoilo Balance: $216,918.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: If Iran is attacked, oil prices could rise further since the oil-rich country's disrupted production may not be compensated for. Once prices hit $200, they are looking at $5 or $6 gasoline, which will really hurt demand and cause a recession. However, Saudi Arabian Oil Minister said that the world's largest oil exporter had no immediate plans to increase crude output because there is no need to do so. A weak dollar has been partly responsible forthe oil-price hike as investors rushed to buy commodities such as oil to hedge against inflation and take shelter from the battered stock market. The G8 summit is going to be held from 7 to 9 July in Hokkaido Japan. This issue is gonna top the agenda, and we'll see how they will try to solve this issue - which i doubt there's nothing much they can do...

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