Eagles writes:
We remain alert to the potential to grow supply at a much faster rate, but ongoing decline in mature areas, supply risks in key producing countries together with the underperformance of some new frontier areas leave us to feel that it will be a greater risk in 2013/2014 than this year. More importantly, building economic momentum, albeit from a weak base, has the potential to pull oil prices higher for the next 12 to 24 months, and while downside risks remain in Developed and Emerging Markets, recent data strength together with high levels of liquidity being added by Europe and potentially Japan, and easing elsewhere provide upside. The quarterly path of our forecasts embody the timing of these risks, depicting an upward trending market lifting our Brent price forecast for 2012 to $118/bbl and to $125/bbl in 2013. Around this average, we also lift and widen our expectations for the likely price range over the course of 2012 from $100 to $120/bbl to $105 to $135/bbl.Bottom line, even without tensions climbing in the middle east, oil prices are headed much higher. The serious price inflation is about to begin.
Thanks for pointing out the absence of an Middle East issues in the discussion. It makes me insane that we'll be bombarded with propaganda about the need for preventative measures in Iran, but the same zombies that regurge the stuff won't even wink at the consequences of such policies.
ReplyDeleteEven worse, I cringe that our dynamite school systems are churning out the kind of critical thinkers that can't put two-and-two together and figure out that alley-ooping Israel on this one leads to further credit card use at the grocery store and gas pumps...
Happy War Crim...I Mean Presidents' Day to all!
http://thelibertyweekly.com/articles/archives/997