Crude Oil To Top 100 Dollar A Barrel In First Quarter of 2011

For the first time in two years, those who bet on rising oil prices
are more than those who think otherwise. The market suffered a “demand
shock” because in 2010 the consumption accelerated.

Oil would climb above $ 100 a barrel
The flat $ 100 a barrel would be drilled in the spot market in the
first half of 2011.

The boom, which yesterday raised the benchmark crude prices to the
highest peak in 26 months at $ 90 a barrel, is creating a dilemma for
the Organization of Petroleum Exporting Countries (OPEC), which meets
on Saturday.

The group must decide whether the current strength in consumption will
continue next year, which would require to produce more, or soon will
be weakened.

The surge in demand favoring the cartel, since the increase in
consumption begins to slowly reduce the abundant oil inventories in
the world. The operators have said that the navy of large oil tankers
earlier this year used to store crude oil in the sea have been
disbanded, and land stocks are also beginning to fall.

“We believe that the flat $ 100 a barrel will be drilled in the spot
market in the first half of 2011,” said Lawrence Eagles, head of the
Petroleum Research at JPMorgan in New York.

A senior trader physical oil market, he added: “We will see that oil
prices will touch $ 100 a barrel next year, albeit temporarily.”

This attitude among bank traders and analysts who were contrasted with
three months ago, when the physical market players who are supposed to
manage the best available intelligence, said it was unlikely that
prices will continue rising and described as mediocre growth
consumption. Since then, a combination of factors has driven demand.

The International Energy Agency, the body of Western countries that
oversees the oil market, estimated that global demand will grow in
2010 by 2.3 million barrels a day, the second level in recent history,
surpassed only by the huge peak 3 million b / d that were added in
2004. “The world oil demand has recovered its pre-recession level,”
said Francis Osborne, an analyst at consultancy Wood Mackenzie.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: