Jan 3rd, 2010 by additeerurl |
Right from the early 2000s there has been a inflation on the price of the barrels of the crude oil. It was generally under $25/barrel but during the 2003 it raised up to $30/barrel. Due to the geo political events and natural disasters, the global oil market had a strong short term effect on the oil prices such as the conflict that arose between Israel and Lebanon and North Korea missile tests, Hurricane Katrina, Iranian Nuclear plant and various other factors. By the year 2008, due to the global recession, the global oil price hit the peak that anyone wouldn’t have expected. It increased up to $147/ barrel. This recession cause the demand for the oil to grow up and energy demand shrink latter.
World crude oil demand grew at the rate of 1.6% on an average per year right from 1998 to 2006. Since all the Energy resources now depend on Oil, Energy Information Administration has reported that the world demand for the oil is project to increase by 37% from 2006 till 2030.It also states that although the Petroleum prices have reduces considerable in developed countries, a 3.5% rise will be observed in 2013 for petroleum by the developing countries and hence will cause a net rise of petrol demand during that period.
Transportation is of the major element that consumes the large proportion of energy and has seen a huge growth in the recent decades. With the increase in the number of vehicles, the oil demand also steeps up thereby increases the demand. It is predicted that cars and trucks consume the maximum usage of oil and thereby increase the oil usage by 75% in India and China. It is also predicted that China and India will still grown in the automobile segment making the use of Oils more mandatory.
Some countries have realised the outcome of global oil inflation and have already started preventive means of reducing this oil consumption. Countries such as Germany and United States have started using Oil free vehicles such as solar powered vehicles. This not only reduces the oil energy consumption but also reduces the global effect on the earth’s atmosphere. Oil charts have shown that there will be considerable reduction in oil consumption if alternative fuels such as bio plastic, bioasphault and other such bio fuels are used. This not only reduces the price but also keeps the inflation under check. The other factor than can be considered to keep oil demand in check is the transport demand management. If that is maintained in regularised manner then oil prices will not rise up.
As the countries develop, the industries, rapid urbanization will lead up to rapid increase in the consumption of oil. India and China lead the way in becoming the largest consumers of Oil. If this energy consuming prevails there will be another recession which might lead to global inflation and thereby result in the fall of the global economy. Let’s try to save energy and save our world.
Dec 30th, 2009 by additeerurl |
The recent world wide economic downturn has caused a decline in all commodity prices. Copper, aluminum, coal, wheat, rice and almost every other commodity has experienced a sharp decline in price. The price of light sweet crude oil was no exception. From a high of $145.08 per barrel in 2008, it plunged to a low of $33.98 per barrel in 2009. The price of light sweet crude oil has recovered some value as it now trades around $78.00 per barrel.
The price of light sweet crude oil is controlled by several factors. For example, the recent plunge in price was not caused by a increased supply or improved technology but rather the combination of decreased demand, drawing down of inventory and no small amount of fear for the future. All three of these factors have somewhat diminished.
Demand for light sweet crude has increased because it is the preferred source of oil to produce gasoline, kerosene and diesel fuel. As personal incomes and industrial activity recover, the demand for automotive fuel and heating fuel can only increase. In the previous months, refiners allowed their stockpiles of fuels to reach extremely low levels. They are now forced to replenish their inventory and meet increased demand at the same time. The refiners have once again begun to buy light sweet crude oil in the significant quantities of the past.
The future contains a mixture of forces that tend to force the price of light sweet crude oil both up and down. The emerging economies of nations like China and India will require an ever increasing supply of light sweet crude oil for the production of fuels. As the economies of the industrialized nations like the United States and Britain recover from the recession, their demand will return to previous or even higher levels. The alternative to light sweet crude oil is the the heavier oil generally produced in the Middle East. This heavier oil has been cheaper to produce in the past but more difficult to refine than light sweet crude. The instability of this region and the increasing production costs make this heavier oil less attractive to refiners.
There are factors which could tend to drive down the price of light sweet crude oil. If the current economic recovery should falter or fail, the demand for oil will fall. Improved gasoline mileage is being mandated by many governments and demanded by most consumers. The environmental movement is opposed to continued reliance on fossil fuels and has many initiatives in place to decrease the use of fuels derived from light sweet crude and all other oils.
There is, of course, some disagreement over the future price of light sweet crude oil. To make sense of these contradictory forces driving the price of light sweet crude oil, the most important item for the investor is to determine the time frame in which the individual factor will have the most impact. The environmental and technological factors may eventually have a great impact. However, it is very unlikely that their impact will be seen in the near future. The current economic recovery indicates an increase in the price of light sweet crude oil for the short term. 2010 should see a continued increase in the price of light sweet crude oil with only temporary downward moves.
Dec 29th, 2009 by additeerurl |
Light Sweet Crude Oil is a sought after type of petroleum because it is used primarily to process gasoline, kerosene and diesel fuel. The price is based on market demand and with a majority of the vehicles currently on the roads using this low level sulfur based oil; it has become a commodity and quite possibly a better choice to higher sulfur levels in crude oil. The oil prices have been steady and haven’t risen since last years climb which caused many people to make choices between filling their gas tank and filling their pantries. Sweet crude is not something that most consumers think about when buying gasoline but are well aware when the prices rise and fall at an alarming rate.
If you want to find out more about Light Sweet Crude Oil news you can watch specific market shows or seek information from the internet. The websites that cater to investors or even novice enthusiasts will have the most current information. You can also gain information from business network shows who might even been talking about the price of oil and how we as a society need it and how we can gain control to distribute it all over the world. Current markets show a slow uptrend because of the holiday months. There will be a spike in the summer months because of extra travel but in the winter months it will drop off due to less driving and most of the road construction takes a break because of the weather.
The way to read an oil chart is to look at past buying trends and market share. Many of the oil charts are based on decades and not year to year growth. Since the demand for more oil has increased due to the population growth the demand has seen substantially increased for those who want to chart the growth of Light Sweet Crude Oil. Although many forecasters say that we should continue to use oil as a viable base for trade developers of cleaner energy are shying away from such claims. The futures market has projected for February 2010 a modest .9% increase. The charts for light crude were started back in 1997 where it was $25.69 a barrel, which is in US dollars; it is now trading at $73.36 a barrel. The biggest increase has been since June of 2009.
The science behind the demand for Light Sweet Crude Oil is because it contains less sulfur which causes more refineries to petrol it. Its lighter which means it won’t clog operating system and thus making machines run smoother will less downtime. Since its inception it is even more in demand for those who can afford to pay for it. Many refineries would rather work with light crude because it has some many applications for buyers and consumers. Alaska is one of the main areas where light crude can be found, the demand puts lots of pressure on this state.
