Would the Oil reach the sky?
This week saw the oil price reach new heights, going to $126.98 on Tuesday, dropping back and then rallying.
And these are some possible Key Drivers this week- Brazilís President da Silva suggested that his country was considering joining OPEC
- Iran announced that it was undertaking a review of oil output, leading to fears that output would be cut This maybe just a rumour but fear of supply shortages had its effect
- Tragic earthquake in Szechuan Province inevitably affected the energy industry coal mines, oil and gas wells may need to be shut downed some sometimes.
A few other factors that influent the supply and demand side of oil are in play that would affect the near future oil price. The delay in production at the major Kashagan oil field in Kazakhstan for several years as the Eni-led consortium and the Kazakh government continue to wrangle. And the expected economic downturn is causing EIA to reduce their demand figures for 2008.
The escalating oilfield service cost - cost of equipment and labor will also play small role in rising oil price.
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