Aug. 21, 2008 -
PRLog -- The price of oil is expected to rise even further James Leong a stategist at Pacific Capital Trading Ltd Hong Kong predicts. After the recent drop back in the recent oil highs, all the economic data suggests that oil will soon be above 150 USD per barrel and eventually at 200 USD for the long term. The recent drop in price was caused by the slow down in demand for oil but a number of factors have caused this. One in particular is strength of the US Dollar increasing against other basket currencies. As the US Dollar gets stronger the price of oil will drop, but long term indicators suggest that a major bank in the USA will go into receivership in the next few months which will stunt the US Dollars long term growth even further. The Olympic games has also cut the demand for oil over the past few weeks as people have not been travelling as much. In China the major factories have been closed down for the Olympics that consume immense amounts of oil and oil derivatives. The demand in China is still growing at an alarming rate so the supply and demand problem will always be an issue especially when countries such as Venezuela are looking to cut production even further. Also we have the winter season about to come into play in the Northern hemisphere the need for Heating Oil will increase which also coincides with the hurricane season which often causes production problems with the refineries and shipping lines. We can expect some sharp rises in the near furture especially with the news of troops pulling out of the Middle East we hope that region stays politically stable or we could see even higher prices than expected.
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Pacific Capital Trading Ltd is a commodities and FOREX advisory service basd in Hong Kong. Servicing individual and corporate clients globally.
