Crude Oil Prices
August 7, 2011 by USA Post
Crude Oil Prices, On the basis of peak oil prices of the 1970 and 2008, oil could easily head and 200 per barrel in the case of a similar crisis today, according to Badr Jafar, Chairman of the Media Crescent Petroleum.
“This increase in adverse oil prices will translate into an extra 110 billion and oil costs per month for IEA member states at a time when their economies remain fragile. This price increase could precipitate another recession global, and even economic losses as a result. Therefore the release and $ 7 million of strategic oil reserves of each month, while supplies remain limited, it seems worth it, “he said.
However, he said, such strategic oil releases only work if the market believes that the interruption will be temporary, providing rapid return to normal, and the stocks can be rebuilt.
Crude oil prices because it indicates that market participants are nervous about the supply shortage and that the intervention of the IEA cannot be working. Brent crude prices have fallen sharply in the initial news of the IEA plans, but have since recovered and are near their highs of around 120 per barrel and during the first half of this year, when the IEA and other oil suppliers developed the crisis in Libya or had time to react. This may be a sign that markets are as tight as they were before the IEA intervened.
“Only decisive action by oil suppliers can provide a long term solution to the contraction of the oil market today,” he said.
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