So we have broken the $100 a barrel price point for oil again, is it a trend? Will it happen again? From everything we see and the demand worldwide for oil, this appears to be a more realistic trend for the next year or two.
One week we have Hugo Chavez of Venezuela telling the U.S. he won’t ship anymore oil to the States, then there are more kidnappings of oil workers in Nigeria, add in the non-stop on again off again religious wars in the Middle East and no wonder the oil prices go up and down so much.
Uncertainty may be padding the price by $10 a barrel or more, but many of these uncertain times are just a matter of time before they have direct implications on the world supply of oil. China and India are still steamrolling ahead with their economies and this just points to continued needs for more oil. Fear of supply disruptions and strong demand will make for a very interesting year.
