Oil Price in 2011
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Discussion

Fittster

Original Poster:

20,120 posts

243 months

Monday 27th December 2010
quotequote all
"The oil price, which has jumped 27pc since May, weighed heavily on market sentiment. The severe blizzard across the eastern seaboard of the US and continued cold temperatures in Europe are expected to push prices still higher as demand for heating oil grows.

Brent crude for February delivery hit $94.52 in morning trading – its highest level since the height of the banking crisis in October 2008 – before profit takers moved in. Although UK markets were closed, Brent crude contracts can still be traded electronically.

Oil prices are expected to rise steadily next year, with many analysts forecasting the price could cross the psychologically important $100 a barrel mark.

Analysts from Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch and JP Morgan Chase have all said they expect oil to move above $100 in 2011, with some raising the possibility that it could happen earlier in the year than many feared.

“The key risk is that we are being too cautious and that the threat of $100 per barrel oil that is implicit in our fourth quarter 2011 oil forecast arrives sooner than we expect – driven by not only a weak dollar, but also by rampant Chinese and emerging market demand,” Lawrence Eagles, an energy analyst at JP Morgan, said in a recent report.

http://www.telegraph.co.uk/finance/markets/8227117...

High oil price, inflation above target, growth down, unemployment high, 2011 could be off to a tricky start!

Jasandjules

72,624 posts

259 months

Monday 27th December 2010
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Lucky for us that the Govt will reduce the tax on fuel....................


Jackleman

974 posts

196 months

Monday 27th December 2010
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The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.


BeeRoad

684 posts

192 months

Monday 27th December 2010
quotequote all
Fittster said:
High oil price, inflation above target, growth down, unemployment high, 2011 could be off to a tricky start!
And in other news, stuff staying the same as the past couple of years. Meh.

dandarez

14,030 posts

313 months

Monday 27th December 2010
quotequote all
Jackleman said:
The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.
We're Reliant on it, cos they're Robin us.

Here's Robin. He's Reliant on his side.


Or... shouldn't that be:
They're Robin us, cos we're Reliant on it! biggrin

Edited by dandarez on Monday 27th December 22:09

ShadownINja

80,112 posts

312 months

Monday 27th December 2010
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It's also described as www.instantrimshot.com

HoHoHo

15,399 posts

280 months

Monday 27th December 2010
quotequote all
If you use more than is produced, if you have st weather, emerging economies and that increases usage, if speculators are doing their best to make money, if it's harder to find and costs more to dig out of the ground etc.

Costs will rise.

And rise

And rise.

One day man's dependence on oil will be his downfall.

ringram

14,702 posts

278 months

Monday 27th December 2010
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As they say the cure for high prices, is high prices.
Not until then will proper efforts be put in to alternatives. Its still cheaper than buying bottled water!

Tsippy

15,078 posts

199 months

Monday 27th December 2010
quotequote all
ringram said:
As they say the cure for high prices, is high prices.
Not until then will proper efforts be put in to alternatives. Its still cheaper than buying bottled water!
Not for long, the delegates in Cancun want to ban Dihydrogen Monoxide hehe

Welshbeef

49,633 posts

228 months

Monday 27th December 2010
quotequote all
Jackleman said:
The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.
our world is built on oil as in economies there are hardly any which do not have any oil involved in what a company makes and delivers.

I think it's accepted that were looking at oil as our key raw material for at least two or three decades at the earliest.
Why do you think Iraq really happened? They are today at their highest output for 20years and by 2015 will be a bigger producer than Saudi Arabia ie 9.5m+ barrels a day.
Why do you think UK want falklands so much
why do you think there is huge pressure to resolve the antartic waters??? Why is Russia claiming huge parts of it ?

If everyone had an electric car we currently do not have enough powerstations to supply them- discovery identified for the us market alone they need to increase their power generation by 100%.
So electric cars are not the solution they can help but of there is en mass change it will not work.

Ozzie Osmond

21,189 posts

276 months

Tuesday 28th December 2010
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I was originally expecting a faster global recovery and had anticipated a UK petrol price of £2 a litre by the end of 2010. Clearly well wide of the mark.

I'd still be tempted to plump for something in the region of £2 a litre by the end of 2011 though, and will be very pleased to be wrong (again)! [If it's less than £1.50 I'll eat my hat.]

Marf

22,907 posts

271 months

Tuesday 28th December 2010
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Won't be long until a certain brand of performance petrol breaks the £1.50 mark I shouldn't think, with diesel following closely behind.

retrorider

1,339 posts

231 months

Tuesday 28th December 2010
quotequote all
Jackleman said:
The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.
You didn't buy that one did you.The oil companies love people like you...

Mattt

16,664 posts

248 months

Tuesday 28th December 2010
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Is there an online graph tracking oil price vs petrol price?

Mojocvh

16,837 posts

292 months

Tuesday 28th December 2010
quotequote all
HoHoHo said:
If you have emerging economies that increases usage, if speculators are doing their best to make money.
Take off and nuke them from orbit.

The only way.

EFA.

7mike

3,215 posts

223 months

Tuesday 28th December 2010
quotequote all
retrorider said:
Jackleman said:
The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.
You didn't buy that one did you.The oil companies love people like you...
Where as they quake with fear at people like you with all your secret knowledge of their cunning conspiracy. Any chance you can enlighten the rest of us?

oilydan

2,030 posts

301 months

Tuesday 28th December 2010
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7mike said:
retrorider said:
Jackleman said:
The stuff is running out, why do people insist on staying reliant on it?

When I say running out, I mean - getting a lot harder to pull out of the ground.
You didn't buy that one did you.The oil companies love people like you...
Where as they quake with fear at people like you with all your secret knowledge of their cunning conspiracy. Any chance you can enlighten the rest of us?
I'd quite like to see evidence to the contrary too. We have gone from using 10,000psi rated equipment, with an occasional foray into 15,000psi to now manufacturing 25,000psi and even, in some cases, being asked about 30,000psi.

Of course this deep, hot, high pressure oil is more expensive to extract.

And then there is the heavy oil deposits that require steam to get them flowing - that is not cheap.

There is also the sour fluids, these can be hundreds (if not thousands) of times more toxic than cyanide so have to be cleaned before use. THAT is certainly not cheap.

We have certainly almost run out of the cheap stuff, everything frome here on in is either very expensive to extract or refine and prices are only heading in 1 direction.


Chilli

17,320 posts

266 months

Tuesday 28th December 2010
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Wished I'd bought a load at $34 a bag.

tubbystu

3,846 posts

290 months

Tuesday 28th December 2010
quotequote all
Ozzie Osmond said:
If it's less than £1.50 I'll eat my hat.
Just quoted for posterity's sake hehe

anonymous-user

84 months

Tuesday 28th December 2010
quotequote all
HoHoHo said:
If you use more than is produced, if you have st weather, emerging economies and that increases usage, if speculators are doing their best to make money, if it's harder to find and costs more to dig out of the ground etc.

Costs will rise.

And rise

And rise.

One day man's dependence on oil will be his downfall.
bks. Long before then the market and human ingenuity will prevail. London was meant to drown in horse st and then a new technology changed the game. The same will happen now. Buy some oil shares for the short to medium term and make a few quid.