Current
Events Affecting Oil Prices
OPEC "Comfortable" With Current Oil Prices
OPEC has decided to keep the oil production cap where it is at its most recent meeting,
stating that their are "comfortable" with the current price of crude oil. They believe
that letting prices rise much higher would harm world economic recovery, whereas letting it
fall lower would cut into their bottom line.
Source: When OPEC decided on the production quotas By MERLIN FLOWER for OIL-PRICE.NET, 2010/03/25
However, other signs indicate that prices have continued to rise and it is reasonable to
believe that, since the supply will not be changing, these other factors will
continue to boost the price of oil. Indeed, the news that supply will not increase
has, itself, caused prices to rise a few dollars a barrel.
Source: Oil Prices .com
NOAA Predicting Warmer-Than-Normal Weather
Our National Weather Service climate prediction for this Spring and Summer indicates
that national weather should average higher than usual. In New England specifically,
weather is expected to be normal for Spring but hot during Summer. This means that
energy requirements related to air conditioning can be expected to be correspondingly
higher than normal.
Source: NOAA Seasonal Outlook
Factors affecting
oil prices are complex and partially psychological. Short-term
fluctuations can be caused by apparently insignificant events
if stockbrokers and speculators think they might affect the future
oil market; at the moment, people are holding their breath to
see what Obama's stimulus plan will do. Long-term changes (over
the course of a season) are generally the result of major shifts
in supply and demand, or on the perception thereof. To learn more
about the recent credit crisis and its relationship to oil, read
The
New York Times' detailed account.
Home
| Heating Oil Delivery |
Oil and Gas Furnace Services Saving
Money | Current Events
| Contact Us | Links
Copyright
© 2010 Ranco Enterprises. All rights reserved.
