Growing world oil use will likely outpace the rate of new supplies in 2010, eroding the huge stockpiles of crude which have mounted around the world since the start of the global economic crisis.
Crude oil prices fell below $78 per barrel Monday as equities rose on Wall Street and the dollar traded lower against the euro and the yen.
Crude oil has raced up by nearly 75% in the current year, tipping above $80 on a few occasions on ideas that the pace of the global economic recovery is accelerating. The rebound in prices, which had dropped as low as $32.40 a barrel in December last year, came after OPEC members agreed to cut production late last year. The recovery gathered further steam as risky assets geared higher following a secular slide in the US dollar since March this year.
In Crude Oil, we can see that 2009 has produced a doubling of price. Many analysts are now setting their eyes on the 100 dollar level. However, the most recent breakout in price has not followed thru and instead we have gone thru four weeks of sideways price.
Christophe De Margerie, Chairman and CEO of Total said that the hearsays of end of Cheap oil age is incorrect because Gulf States have reserves of Cheap Oil but prevent the International Companies from reaching it due to strategies related to keep the resources to the coming generations.
Brent crude oil futures ended Friday trading up around one percent, oil price at $77.15 a barrel on the ICE futures exchange, the highest price in 2009 so far and the highest close since Oct. 13, 2008 $77.46. Brent oil prices traded from $75.39 to $77.21, the highest since $78.46 intraday high on Oct. 14, 2008.
Monday morning after crude oil futures prices fell back below 68 U.S. dollars, a continuation of the previous trading day down the momentum. Demand for the oil market remains weak as well as the U.S. dollar against all major currency exchange rates generally higher, is the main reason for lower oil prices today.
Crude oil may average 35 percent higher in New York next year and rise to $85 a barrel in 2011 as spending by governments boosts global demand, Morgan Stanley said in a report.
The Ceuta area forms the southeast extension of a major oil accumulation in the Maracaibo Basin, at present Venezuela’s main oil producing area.
Oil prices have risen ahead of an Opec meeting, as a weaker US dollar made the commodity cheaper in other currencies.
