We are seeing a slight hike in oil prices, about to $73 a barrel….this due to fears of a major storm strike in the Gulf of Mexico petrochemical & oil facilities.
But these are probably short-term rises….what prediction can we make on a long term…say 2-3 years ?
I’d say a very, very steep hike.
The reasons are:
The crisis in the Middle East show no signs of declining. In fact, they are escalating. The relation of quite a few oil consuming countries with Iran is deteriorating.
Then, there’s a nexus between some OPEC countries like Venezuela, Iran with China & other consumers…..this would cause a lot of jitters in Western & Far East capitalist countries.
Gasoline consumption of developing countries like China & India are increasing exponentially.
Russia has overtaken the U.S. to be the second largest oil producer….and Gazprom is . Russia is flexing its muscles, and seems to be on a trade agreement with anti-capitalist allies.
And lastly, the MOST IMPORTANT FACT :
THE GLOBE IS RUNNING OUT OF OIL………some predict we have oil only till 2050….and by 2015 there would be a shortfall of 25%
So, my prediction is…..fear will drive the oil prices sky high.
SO THIS MIGHT BE JUST THE RIGHT TIME TO BUY THOSE OIL STOCKS…