It is hard to believe that crude prices would drop from $147 this summer to under $90.
The Department of Energy believes prices will move back up. The agency now predicts that West Texas Intermediate (WTI) crude oil prices will average about $112 per barrel in both 2008 and 2009.
Unless the global economy is weaker than anticipated, EIA expects that the call on Organization of the Petroleum Exporting Countries’ (OPEC) crude oil will exceed OPEC crude oil production over the next 6 months.
Global oil consumption is projected to rise by about 300,000 barrels per day (bbl/d) in 2008 and by almost 800,000 bbl/d in 2009 compared with year-earlier levels.
Solid growth in non-OECD countries, especially China, Latin America, and oil-exporting countries in the Middle East, is partly offset by sharp declines in U.S. oil consumption as well as lower oil consumption in many other OECD (Organization for Economic Cooperation and Development) countries.
Oil is going back up.
Douglas A. McIntyre
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