Can anyone stop the rise in oil prices?
An economic point of view:
Mr. Fitzpatrick says part of the increase comes from new investors and speculators entering the oil markets. "Now, we're seeing pension funds, equity funds, people who feel th
ey need a commodity component in their portfolios," he says. "They are unencumbered by numbers, by history."
Despite the high prices, energy demand continues to be strong. Some of this is weather-related: Cooler than normal temperatures have kept demand for home heating oil strong in the Northeast. "It's been a long, cold end of winter," says Mr. Felmy.
A diplomatic and economic one: The growth of China.
Globally, demand remains strong as well. The main forecasters continue to predict that China will represent a third of growth in demand. Some of the Chinese appetite comes from work on filling a strategic petroleum reserve of up to 750 million barrels of oil.
No comments:
Post a Comment