OGJ Newsletter

Market MovementSustaining $30/bbl possible?Is it possible for oil prices to be sustained above $30/bbl for much of this year? Click here to enlarge imageIt is, if one assumes the IEA is correct in its projection that oil demand will increase by at least 1.5 million b/d this year. So says London-based think tank Centre for Global Energy Studies. But CGES differs with IEA's estimate of demand by about 500,000 b/d (see chart).As is often the case, Iraq is a wild card. Depending on whether it chooses to sharply boost or slash exports this year-and either option depends on its relations with the US-it's anybody's guess as to whether the second half will see $30/bbl oil continue or...

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