Monday, July 17, 2006

Oil in 2007, Prices cooling

OPEC announced that it expects several factors to lead to the cooling of prices next year. However, they warned that the price of oil would still be subject to change due to political situations throughout the world. Right now that would be Iran, the current Israeli campaign to recover their soldiers and destroy various militants that host countries have neglected to reel in, and of course the ongoing problem in Nigeria. Apparently that is "muslim oil" there and should not go to the American "devils."

Oil prices helped by 'moderating' factors in 2007: OPEC
"The expected increase in OPEC capacity, combined with the projected decline in required OPEC crude, should help to moderate prices," the Organization of the Petroleum Exporting Countries said.

"Whether the market will benefit from the full effect of these trends will depend mainly on downstream developments and non-fundamental factors, particularly geopolitical tensions, a major factor behind the current record high oil prices," it added.

OPEC capacity is expected to increase by 1.0 million bpd to 34.3. million bpd by end-2007 but demand for the cartel's oil is set to drop to an average 28.1 million bpd, down 600,000 bpd from the estimate for 2006, due in part to high oil prices and slower economic growth, the report said.

Non-OPEC supply in 2007 is set to increase by 1.7 million bpd, to 53.1 million bpd, compared to 51.4 million bpd in 2006, mainly helped by Africa, North America and Latin America, the organisation said.

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