Monday, July 27, 2009

Oil Price vs. Supply / Demand

The above figure by Euan Mearns on The Oil Drum Europe shows monthly oil production data and monthly average oil price data from economagic fit Phil Hart's simple model. The return path since July 2008 is shown in light blue. Marks at one month intervals.

A reduction in global oil production capacity will mean that higher future oil price will be attained at a lower level of demand than in 2008. Is another oil price spike on the way? Will oil trade well above $100 in 2012 as suggested by the following scenario?

Check out the full post on future oil price.

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