Oil prices ticking up at $108.81+ a barrel this Wednesday, $ is weak, war in Libya , Yemen in turmoil , Saudi Arabia shaken at best . U.S. crude supply shows mixed signals about demand as the summer driving season looms . Central Bank will raise interest rates but when ? A weaker dollar makes oil and other commodities priced in dollars inflationary thus the dollars are chasing commodities . African country's like Nigeria a oil supplier is largely ignored and with it's internal problems oil production is unlikely to return to normal levels soon .
Even though the Libyan conflict "is the single greatest issue driving crude prices at present," said a report from JBC Energy in Vienna other hot spots dare I say are untamed . The American Petroleum Institute is suggesting stronger demand even in the face of 4 gasoline say analysts surveyed . Plenty of inventories of gasoline as the API reports even as with a large unexpected draw in crude oil inventories .
The price gap between the Nymex and Brent contracts has widened again as Brent's rise has outpaced the U.S. benchmark , why ? It is hardly surprising that U.S. oil is not able to keep up with the latest rally and is even tending a little softer , said analysts at Commerzbank. "This is because the tensions in North Africa are largely behind the rise in prices while the supply situation in the U.S. essentially remains relaxed."
For now , but at any given moment traders who are mulling over the impact of rising global tensions say demand for crude oil beats on . On the other hand , China hiked interest rates for the fourth time since October in a bid to slow inflation , lots of ruck ! So far China's rate hikes have not collared inflation nor will it anytime soon as it is a big freight train .
When it does slow , oil prices are likely to fall . Natural gas has to date been under utilized this could change if the unthinkable happens , oil goes parabolic ! Oil right now has been backing and filling allowing markets to adjust this could change in a instant for the many reasons mentioned .
Human nature itself is evermore an advocate for liberty. There is also in human nature a resentment of injury, and indignation against wrong. A love of truth and a veneration of virtue. These amiable passions, are the "latent spark"... If the people are capable of understanding, seeing and feeling the differences between true and false, right and wrong, virtue and vice, to what better principle can the friends of mankind apply than to the sense of this difference?
John Adams, the Novanglus, 1775
The Arab nations have had a taste of freedom the genie is out of the bottle .
oil prices had reached $145 a barrel 2008 & now it's at 111.59 as I type , driving gas prices to $4.00 . Most news sources blamed this on surging demand from China and India, combined with decreasing supply from Nigeria , Libya and Iraq oil fields as the African conflicts continue . Oil Price May Hit $200 a Barrel, May 7, 2011 , baa ?