Oil Prices Skyrocketing

How high will the price of a barrel of oil go by year end?

Oil demand in China, India and other developing countries is once again on the rise. The production of light sweet crude form Libya has ceased because of its civil war. If the war is protracted, as many expect, that country’s much sought after sweet crude may not be available in the foreseeable future. Although Saudi Arabia claims to have stepped its production of oil to fill the void left by Libya, refiners cannot easily process the Saudi lower quality crude into the high quality, low sulfur oil that Libya had been producing.

On April 1, 2011, oil futures reached a two and one half year high with light sweet crude at $107.23 a barrel on the New York Mercantile Exchange and Brent crude reaching $117.71 on London’s ICE Futures Exchange.

Civil unrest in other Arab and North African countries, where much of the world’s oil is produced continues to escalate. Could this unrest threaten oil production in these countries as well?

How high do you think the price of a barrel of oil will go before Year’s end?

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Secotan: An Alternative Energy Novel

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Henry Gorham Author of Secotan Copyright © 2009 Henry Gorham www.henrygorham.com