If It’s Not One Thing, It’s Another
Just as you probably suspected, there is more than one reason behind the rise in oil prices. There seems to be more than an ample supply in the US, but never mind that.
Consider:
Unrest in Nigeria, Africa’s largest oil producer.
Improving US economy
Positive economic signs in China, the world’s 2nd biggest oil consumer, equals more fuel demand.
Are prices going up? Looks that way.
…major groups like IEA and EIA have projected strong demand for oil in the near future. According to Barclays oil prices were likely to rise to $80-$90 range. Quoting data from Joint Oil Data Initiative (JODI), which said that the Asian demand for oil was increasing by more than 2 million barrels per day, Barclays analysts Paul Horsnell said, “If Asian demand can grow at such rapid rates when prices are in the $70 to $80 range, then prices cannot stay in that range for much longer”.
OPEC is not changing output quotas at the moment. No help in sight there either.
