Global oil supply needs to increase by 500,000 barrels to 1 million barrels a day in the next several months to meet demand, an oil official from a Middle East nation said six days before OPEC meets.
Iran’s president, who has declared himself “acting” oil minister, might chair next month’s meeting of Opec, according to a senior aide, setting the stage for a highly politicised gathering of the cartel.
By Casey Research
With the civil war in Libya now entering its third week, Egypt moving haltingly towards free elections, and hundreds dead in Syria, Yemen and Bahrain after a month of anti-government protests in each country, the Middle East is rife with instability. On Wednesday, April 6, that instability pushed the spot price of Brent oil above US$123 per barrel, a high not seen since August 2008 when prices were crashing from an all-time peak of US $147.50 on the eve of the financial crisis.
OPEC, the oil producers’ cartel, will reap $1,000 billion in export revenues this year for the first time if crude prices remain above $100 a barrel, according to the International Energy Agency.
Oil majors will have to share more power with state energy companies as the world becomes increasingly dependent on Iraq and Saudi Arabia for fossil fuels.
Oil prices are inching toward $100 per barrel, though OPEC leaders Kuwait and Iran said there isn't much need to increase supplies.
Jason Schenker, president of Prestige Economics LLC: "We see an average for this year likely to be around $93 a barrel. Brent's going to be a little bit higher than that, closer to $94 a barrel, but in terms of how high we could get at any point in this year: we're very likely to see prices at over $100 at some point and if speculators pile on into this market and other markets, I'm certain you could see even our forecast seem a little bit low."