energy prices
February 12th, 2008 at 04:52pm
Under Crude oil+ Fossil fuels+ Fuel Oil+ Fuel Prices+ Oil Price 2008+ bio ethanol+ energy prices
As the world knows, the prices of crude oil are jumping up fast, and show no signs of slowing down. The same price effect is seen with the fuel prices for gasoline and diesel. The average fuel price for a gallon gasoline in the US is now over $3.00 and Americans are getting used to the fact that “Buying a Car is much easier than Keeping it Rolling”. Car owner costs are increasing lately by raising concerns about the insurance/banking sector and the sharp raise of crude oil prices.
As gasoline prices has jumped above $3 several times lately it made me think “Will we get used to gas prices going over $4.00 or $7.00 or even higher?? Many experts are saying other fuel sorts like bio-ethanol will take over this market, but these new energy products don’t show signs of taking over the market any time soon as it isn’t even publicly available yet. And even if new energy products like bio ethanol, wind energy, solar and others take over, it will take awhile… at least 15-20 years according the international energy advisory board. Still at the demand side for crude oil there are absolutely no signs of slowing down.
A recent crude oil and fuel study showed that the entire world is consuming oil at a rate of more than 1,000 barrels per second, including all kinds off crude oil products. According to the International Energy Agency, global oil demand will increase to an average of 87.8 million barrels per day though out 2008.
Can we seriously find an alternative for our “extreme addiction” for crude oil as George W. Bush calles it. We must find out soon, before it’s too late. What’s your opinion?
Check the fuel prices graphs for Gasoline and Diesel fuel prices.
By Oilism.com
December 15th, 2007 at 05:55pm
Under Historical oil prices+ Oil price+ energy prices
One thing is for sure, over time crude oil prices fluctuate a lot. Any investigation of historical crude oil prices will reveal interesting trends and trade signals. For a part this can be explained by seasonal trends which are more easy to forecast than political tensions. We strongly suggest the usage of precise weather forecast data within your crude oil strategy. For example, many people may think in winter time crude oil will climb fast. But in reality and after studying many of raw data sets; In winter the crude oil price slowly climbs as the demand for heating oil increases. In the spring crude oil prices change slightly but rise again in the summer. Thereby any event that can significantly changes the demand or supply for crude oil will shift prices.
But also in the time dimension interesting information can be found in the crude oil price history chart.
In 1950 an average of $2.49 USD is registered for a barrel of crude oil. Without take notice of price inflation correction, the average crude oil price in 1960 was $2.91 and in 1970 still just $3.18 a barrel.
Around 1980 the oil price increased drastic to a yearly average of $21.59. From 1990 till 2000 the crude oil prices hovered from $20.03 to $26.72, respectively. Now, around the beginning of 2008 crude oil futures are settled around the 90$. It is worth noticing that the historic crude oil price of 1950 of $2.49 ends up $19.71, adjusted for inflation.
By Oilism.com
December 12th, 2007 at 03:57pm
Under Crude oil+ energy prices
The crude oil supplies decreased in the week of 7 December with 700,000 barrels up to 304.5 million barrels. This becomes clear from data of the American ministry of Energy. Analysts counted on an average increase of 100,000 barrels, so this figure was lower than expected.
The petrol and fuel supplies, of which an increase with 1.2 million barrels was forecasted, ended up stronger than expected with an increase of 1.6 million barrels up to 202.2 million barrels of crude oil. The supply stock of heating oil and diesel – decreased with 800,000 barrels up to 131.5 million barrels. Analysts counted here on an increase of 300,000 barrels.
Thereby the refining capacity decreased with 0.6 percent point up to 88.8%. Analysts counted on an increase with 0.1 percent point. All this rolled up together results in oil price above $95 a barrel in afternoon trade.
The latest interest decision of the Fed will probably not have much influence on the price of crude oil. According to analysts lower interest rates can prevent that the US economy heads up for a recession which stimulates the demand for crude oil. The USA are responsible for a quarter of the worldwide crude oil demand.
An interest lowering increases the pressure on the dollar and makes crude oil much cheaper for foreign currency holders. It is a plausible scenario that these buyers will drive the demand for crude oil further and with that the price a barrel.
In a monthly report the American Energy Information Administration (EIA) makes clear to expect the worldwide oil market will remain tight on demand/supply ratio in 2008. The monthly average crude oil price will come around $85.
Within the near future the EIA expects the worldwide demand for crude oil will grow more rapidly than the supplies outside the OPEC region. Thereby is expected that the decreasing supplies of crude oil will keep playing a major role in on the oil market the upcoming periode. Finally the EIA believes the consumption of crude oil will decrease with 1.4 million barrels per day in 2008.
Things to keep in mind for crude oil trading in 2008;
- Economic growth, how the credit crunch and housing crisis will impacts the growth and in the end the energy usage.
- Movement toward low mix of distillates and low emission and its impact on future demand for crude oil.
- The increasing refining capacity shows the limitations on crude oil supplies and the corresponding impact on gross refining margins.
- OPEC’s ability and willingness to provide the worldwide oil market with additional crude supplies.
- Cold Weather? Let it snow, let it snow……
- Worldwide tensions. For example; the rising nationalism in Venezuela and Russia, the Iraq war, the Iranian impasse over nuclear weapons and the Nigerian civil unrest can all have negative influence on the availability of crude oil supplies which is close connected to the crude oil price.
- Al Gore his Environmental Activism and its impact on future energy usage and the development and adoption of fuel and petroleum alternatives like bio ethanol.
By Oilism.com
December 3rd, 2007 at 06:33pm
Under Middle East+ OPEC+ Production levels+ energy prices
THE OPEC does not want raise oil production. According to the OPEC there is no shortage to oil at this stage.
90 dollars
THE OPEC, the organisation of oil exporting countries, have decided not to increase oil production levels at this moment especially now crude oil prices decreased up to under the 90 dollars a barrel. This has been communicated by OPEC ministers just for the beginning of the meeting in Abu Dhabi.
No Oil shortage
Spokesmen from among others OPEC countries like Saudi Arabia, Libya and Qatar also agree that the market shows no proof of a shortage for oil. According to the ministers there is nothing wrong with oil supplies controlled by OPEC, although crude oil prices are still relatively high.
By Oilism.com
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