EIA outlook oil market for 2011 and 2012 was released yesterday. According to the report, despite the recent drop in gasoline prices in the US as the crude oil prices curbed their rises; there is a good chance that the oil market isn’t over from heating up again in the next several months.
In the last couple of weeks crude oil prices remained around the $100 mark (WTI spot oil), after they inclined during the first four months of 2011. According to the EIA the expected increase in oil demand in the remainder of the year will trump the oil production which could further tighten the crude oil market and reflect on higher prices.
The EIA rely in the analysis that during this week OPEC didn’t reach an agreement on raising its oil production quota. On the other hand, despite the disappointing economic indications of the slow recovery of major economies including US and Europe, there are still expectations of a growth in demand for oil mainly from non-OECD countries; these forces could result in a gap between crude oil demand and production during the second half of 2011; this gap could further push crude oil prices up in 2011 and even 2012.
That being said, and currently oil prices are traded down, as the USD is traded up:
Current Nymex crude oil price, short term futures (July 2011 delivery) is traded down with a 2.43% decrease, and its at $99.45 per barrel as of 17:32*.
The Dated Brent spot oil price declines by $1.2 per barrel and it is at $118.15 per barrel as of 17:43*.
Euros to USD is currently traded up at 1.4365 a 0.9952% decrease as of 17:39*.
The Canadian exchange rate compared with USD is traded up at 0.9771 a 0.4232% increase as of 17:39*.
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