Oil Dollar Euro ULP

I’m interested by the claim repeated in numerous news analyses that “investors are buying oil to hedge against the sliding greenback” – it seems to me to be a tad more significant that world oil demand has exceeded world oil supply for the last several months, and looks like doing so for at least the rest of this year. My forecasts for year end 2008: $145 barrel; A$1=US$1; ULP at $1.87 per litre. Enjoy.

Continue reading Oil Dollar Euro ULP

Oil Prices: where now?

On Webdiary we’ve gone round the the Peak Oil loop more than a few times over the last few years (eg here). A new point of interest has arisen over this week: for the first time in the last few years the oil futures price has come out of its persistent state of contango as it rose back over USD75. What does this mean? Well, the short answer is, for the first time in a long while, oil futures dealers are not on balance convinced that the next move in the oil price is necessarily up.

Continue reading Oil Prices: where now?