Oil prices slipped above $78 a barrel Friday (16-10-2009) as investors speculate with the prospect that global growth is in a upward movement. Oil prices have fallen about 67% in four months, plunging from a record $147.27 in mid-July 2008.Demand for gasoline crude products during the past week had a slight increase, due to a decrease in US stocks and the dollar at new record low levels.
According to WorldWatch this does not mean there is a increase in crude demand, most world economies have not started to recover, and those that have are facing new challangers.
If OPEC does not try to control crude prices from speculation and less honest traders and governments and consumer prices rise, then OPEC may face a decrease in demand as much as 12% first quarter 2010.
These figures are based on actual demand using a crude price referrence of $66 a barril. Any price above $66 a barril will undermine world recovery and place in check most OPEC based economies.
Alternative energy methods will be strengthen causing a further decline in crude, so if OPEC wants to survive it must control this energy price
as it leaves the oil fields around the world.
Source:WorldWatch
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