How long will cheap oil last?
Don’t get too excited about RM1.80 petrol, it may not last that long
Firstly Opec is not going to stand for subUSD50 oil for long. The reality is that oil will still be profitable even at sub USD40 per barrel but since all the oil producers are used to high prices, they are not likely to let the taps run for less than USD50 per barrel for long.
My guess is that they will pinch supply until prices creep up to the mid USD50s or low USD60s per barrel, which is a fair middle ground.
When I say fair middle ground it means that that is about as much pain as consumers are going to put up with without groaning too much, at aroudn USD60, petrol will probably float back up to RM2 per litre. That’s not cheap but after RM2.70 petrol that will look reasonable.
Environmentalists will also puch for dearer oil because, lets face it, there is very good argument for making petrol a bit dear because it will help to control our consumption and promote environmentaly friendly technologies.
My bet is that oil will go back to USD60 around February or March and stay there for most of 2009 before rising slightly again. I am betting on an upturn at the end of the first quarter because this is when most experts expect the economic downturn to bottom out and once this happens everyone can start planning for a rebuilding and that will mean increased demand and consumption
I have said it before and will say it again that in the new decade oil price will stabilise between USD60 and USD80
I think u need some bigger crystal balls
Fuel price when is up, they know how to increase. But when is their mind going to get clear enough to review our automotive policy?Abolish the AP system,free the market and let market force determine survival.
It should be kept as high as possible with a heavy tax to promote
alternate renewable. The FACT : WE DO NOT NEED OIL FOR
ENERGY ANYMORE. STOP immediately the green house effect.
The ice cap are melting. Are we going to wait till New York and other major
cities drown before we do anything ?
Are we going to let politician and greedy corporation get away.?
You have to answer your future love ones call now.
IN the crystal ball it say:
Human are programmable by habits. We can drug them, we can dose them with
opium, we can aslo trick them with cheap cigarettes and create an industries.
So are there going to be another opium war of the 21st century. Maybe we need a
shock therapy to drop the dirty habits.
Wake up humanoids.. Oil is our forefather whims , We got water, wind, solar, plasma, geothermal,
tidal, hydro.. etc.. maybe fiction.
Forget oil .. it is also a political tools.. If you start pumping water for fuel,, that political bugs stop there.