25.04.2012 - Global crude oil prices: Why volatility is likely to endure
Crude oil, albeit in decreasing proportions, will likely remain significant in the global energy utilization mix for the next few years. The impact of the commodity's price on the global economy is therefore palpable. The issue of peak oil is resurgent and there are current concerns - even if somewhat mitigated - about an oil price shock. Speculations were also rife in 2009 - amid the global economic decline - about an imminent crude oil price shock. The argument then was that the extant, low-price regimes constituted a disincentive to upstream capital expenditure (capex) and that when the global economy began to rebound, oil demand growth would vastly outstrip supply capacity...............................................Full Article: Source
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