Tension and uncertainty against the high prices of petroleum
December 26th, 2009
Bad new with respect to petroleum. The bullish gust of wind of the prices seems to never finish. When the market begins to become stabilized, the new unforeseen expenses take to the international prices to release new and more important scaling. To this, the intransigent position of the Organization of Exporting Petroleum Countries is added that maintain their refusal to release an increase in the produced volumes as it forms to compensate the high reached prices.
According to the president in carrying out OPEC, the minister of the Petroleum of Algeria, Chakib Khelil, the prices of petroleum could get to reach US$ 200 to stay the conditions present.
In order to explain this tendency, Khelil concentrates in
two great phenomena. First it is the weakness of the dollar. Whenever the permanent American devaluates itself in a 1%, the prices of the petroleum barrel will raise US$ 4. The speculative phenomenon, on the other hand, will give a added push to the rise of the international prices. The financial crisis and the evolution of the different markets take that the great investors look for a defense their assets in petroleum and other raw materials that assure protection before the uncertainty the financial markets.
Even though both factors are of crucial importance to include the ascending process of the prices of petroleum, the cause of the recent bullish impulse must look for by the side of the supply and the production.
Strike untied in Scotland the past weekend in the refinery of Grange mouth, is interrupted the British production in more than 70 platforms of the North Sea. Closing of pipe lines, you cut of the provisions of steam and electricity to the oil fields of Forties and another series of disadvantages took to that the production of 700,000 daily barrels in a situation was interrupted that until at some future date is not hoped to revert.
As well, the situation in Nigeria contributes to make difficult the present situation still more. Regular attacks against oil facilities, blast of pipe lines and continuous threats of armed groups, are current currency in the African country.
All this already brings about a strong uncertainty in an international market of in case worried about the global economic instability. Sensitivity power the effect of this class of phenomena and shoots the prices at world-wide level to levels that still more accelerate the growth of the inflation.
Tags: analysis of market, Economy and finances, Market of Oil, OPEC, Price of Oil, Strikes