$100 Oil Is Coming Sooner Than You Think
Dian L. Chu
Jul. 5, 2010
Sentiment in the crude oil market has been quite pessimistic lately after some disappointing economic data fueling fear over the strength of the U.S. recovery, and signs of a possible China slowdown. This is on top of the market distress already exerted by the Europe sovereign debt and banking crisis.
Oil price was down 8% for the week, with the front-month August delivery settled at $72.14 a barrel on the New York Mercantile Exchange.
Crude oil prices have been mostly held back by the temporary oversupply mostly due to the stagnant and declining demand among the developed nations. However, over the coming months, oil price should push higher reflecting the changing global demand/supply pattern resulted from some new development in the sector.
Moratorium Push – Production Loss and Delay
Despite a federal ruling to lift offshore drilling ban, the Obama administration filed an immediate appeal along with a “modified moratorium” in the planning. Many analysts still expect the ban could last well beyond the intended 6-month period.