Report on Crude Oil Future Price Expectation By Sevak
Where will Go Crude Oil Prices in Future? Currently crude oil is trading at $ 71-74 per barrel that is almost 50% less than its level of $147 per barrel, within 3 months duration. People are quite confused about the price movement of Crude Oil prices. Before coming to any deciding point, first let me put some facts and figures related to Crude Oil prices: US alone consume 25% of total world output of Crude Oil. And, there are widespread signs of demand destruction in the largest consumer of oil – US. Oil, too, is a cyclical business; the length of cycle may vary, but in the end it has to come down based on efficient market theory. The Crude Oil market is well supplied and this year its production; even after all type of supply constraints; has increased or going to increase by some1.5-2%. In other words of demand and supply, there is no big gap – if any – between the two. Oil spending as a share of the Global Economy has risen to > 7%, a level last seen in late 1979. And, What happe...