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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The crude awakening returns.

Today in the Wall Street Journal I read the article Remember crude? Commentary: Global petroleum demand earns fresh scrutiny

I read this today. China is leading the way back to the oil prices we knew in 2008 before the crash. And then there is India, Vietnam, Mexico and all of the rest of the world’s popululation who want to drive cars, have air conditioning and all the other amenities that we take for granted. As our economy recovers, so will our own demand increase to compete with the world’s demand for this diminishing recource. Is there an obvious message here?

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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