Where do expect oil price per barrel to go from here?
ZACK U asked: Oil is increasing because as you get closer to supply overload, perhaps the oil price starts becoming asymptotic. The economist said speculators couldn’t drive up the price of oil because they are simply trading ‘paper barrels’. However, all this demand for contracts has to increase demand somewhere; They buy oil, then they sell it before ‘delivery,’ but in the process they are increasing demand. It would seem that oil price could come down fairly easily. There is 1 million barrel discrepancy between supply and demand. With people’s lifestyle changing a little bit, you could easily take out 4 million barrels of demand and then the price could really plummet to 30’s or 20’s. Nevertheless, this would mean a constant constraint on world growth, as every time the global belly would swell a price shock would ensue; demand growth is faster than supply growth. It will be interesting to see where it goes. Please leave your insightful comments below. Eventually high prices make al
