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Lloyds of London Add To Peak Oil Debate
13/7/2010
Llyods of London have released a white paper warning of a potential energy crunch and the possible risks for those who are unprepared for it. The paper describes how an increasing demand, environmental and technological constraints could create peak oil conditions well before the amount of obtainable oil actually peaks.
Lloyds is not the first nor the last to add to this well discussed area. While Lloyds add to the views on the subject it seems that predictions are limited in use. This is highlighted by one chart in the Lloyds report showing some groups predicting $200 a barrel prices by 2016 and others $100 by 2020. It seems that analysts will make predictions but to find out with any certainty we are just going to have to wait and see what happens.
For anyone using petroleum products such as heating oil it is going to be important to shop around to make sure the price you pay is fair. Heating Oil Comparison Site WhichOilSupplier makes this easy for you by offering comparisons of supplier prices and service throughout the UK.
Paul
BP Oil Spill Now Into Its 35th Day!
26/5/2010
You would of been forgiven if you thought that the BP oil spill, which started back on 20th April, had been resolved and clean up was under way. With the economic crisis in Europe and new UK coalition parliament it seems that the oil slick in the Gulf of Mexico has had its two minutes of fame.
Despite this lack of recent press attention around Europe, it is still a major problem. BP are coming under intense pressure as previous attempts to stop the spill have failed. The latest plan called a 'top kill' is to inject heavy drilling fluids into the well to seal the leak.
Although this oil spill is likely to become the worst environmental disaster in US history it is the problems on this side of the Atlantic which are influencing the price of oil. Most economists suggest that the UK the markets will stay undecided until the emergency budget is set out in June.
In the meantime oil prices are falling so why not see the latest price in your area, click here to find out.
Paul
Prices falling
10/5/2010
On Wednesday crude oil dropped to just over $80, yesterday it dropped to just under $80 and today it stands at $77.42 a barrel. Over recent weeks the BP oil slickbeen making most of the headlines. However it is the Greece crisis and strengthening dollar that are impacting the price of crude oil significantly at the moment.
The Greece crisis revolves around the large debts they have created. This has meant they have had to take a 110 billion Euro bailout from EU members and the IMF. This is pushing oil prices down because markets are concerned that the downturn in Greece could threaten the economic recovery in the Euro zone and thus reduce demand for oil in the future.
The strengthening US dollar is putting downward pressure on crude oil as the purchase of crude oil in other currencies is becoming increasingly expensive. Thus to keep up the demand for oil there is downward pressure on the price to keep the price affordable.
While there is current downward pressure on crude oil some analysts are suggesting that the BP oil spill could push prices higher as the supply of oil becomes restricted. There are some who would suggest that the oil spill cause crude oil to go back to the $100 per barrel mark. However international oil giant Shell says the BP oil spill will have limited impact on both price and supply.
These two incidents highlight how fragile and volatile the oil market is.
Paul
European Airspace Reopening Pushes Crude Oil Prices Higher
21/4/2010
Oil prices have started to increase again in response to European airspace slowly being reopened. Since the Icelandic volcano erupted much of Europe’s airspace has been closed which resulted in a decline in oil prices due to an expectation of reduced demand.
Not long after it was announced that planes could fly through some parts of the ash cloud oil prices responded with a 2% increase. With a small increase today crude oil is currently trading at $84.34 with heating oil up just under half a penny today.
Paul
IEA Predicts New High For Oil Demand
14/4/2010
The IEA has said that it expects that demand for oil this year will surpass that of any year prevously. It suggests that the demand could reach 86.6 million barrels per year.
While this might seem unimportant it is the effect this demand will have on the price that is important. With the release of this forecast prices rose again as concerns over an oil crunch started to increase.
While this is only a short rise in reaction to the IEA news it is likely that with this demand crude oil could be anything between $80 to $100.
Paul
Oil Prices Climbing
29/3/2010
With the expectaton that the US is expcted to be continuing its steady recovery oil prices have started to climb slowly. While this is optimism on the parts of some we will have to wait until later in the week to see what the figures actually say. This is when we may see upward or downward pressure on oil prices dependant on what the figures show and how businesses and economies around the world react to the news.
Paul
ConocoPhillips could be Preparing to Shutdown UK Refinery
26/3/2010
Bloomberg recently reported that ConocoPhillips is likely to shut down part of its Humber oil refinery to allow for maintenance work to be carried out. Work is expected to start in 2-3 weeks with the work lasting around 6 weeks.
This could limit the fuel production causing a reduction in output which might increase prices. Only time will tell whether this has a significant impact on heating oil prices in the region. Check back soon for further updates...
Paul
US Crude stock rises causing oil to go below $81
25/3/2010
On Wednesday crude oil stocks held by the United States reportedly rose 7.3million barrerls which was 5.67 million more than was expected. This leave US inventories at 351.3 million barrels which is increasing due to a lack of demand.
Demand over here in the UK has dropped more than 10 percent and while the Chancellors budget may have looked been on the optimistic side some analysts seem to suggest that the high jobless rate will continue to limit consumer spending for some time
Paul