Tightening supply/demand balances will put a floor in prices for 2008, not unlike what has been seen in the past five years, surely sending the light, sweet crude futures contract on the New York Mercantile Exchange (Nymex) easily soaring above, what some would deem a magical number and what others will view as another day at the races: the $100 per barrel level. According to the Energy Information Administration, US commercial crude stocks fell to 289.6 million barrels at the end of 2007, the seventh consecutive decline in inventories and the lowest level since the week ending Jan 5, 2005. While the US accounts for 25% of total petroleum demand, America is not expected to drive demand growth in 2008. Meanwhile, high natural gas inventories should continue to keep downward pressure on natural gas prices in 2008. Barring any disasters, natural or man-made, natural gas supply should not be a major concern.
Pages to are hidden for
"ENERGY 2008: HIGHER PRICES AND VOLATILITY"Please download to view full document