[Newsseeker]

The First Full Year of Peak Oil
by Anderew McKillop for Petroleum World

PRICE BREAKOUT
In the forecasting period to Apr 2007, as argued, day traded oil prices for Brent and WTI can experience extreme volatility to 49 USD/bbl but may settle in a 55-63 USD/bbl range on a week-average daily closing price basis. Price breakout, exclusively on the upside we note, is not excluded.

The Summer peak of world oil demand (July-August) is identified as a key period for oil price movement. Prices may explosively grow in the run-up to this peak, starting from April-May 2007.

Price breakout in the Summer 2007 world demand peak will be set by physical demand. On a wide ‘all liquids’ base this may exceed 88.5 Mbd, including the biofuels (close to 0.5 Mbd). At this time, we may be facing a de facto undersupply context.

http://www.lifeaftertheoilcrash.net/Arc ... lYear.html

[Tanada]

I think it all depends now on refinery utilization, if they actually get things up and running nearer normal then the oil stockpiles which have been depressing prices will start falling pretty quickly, when that happens the price will respond rapidly as ststed in the article. On the other hand if the refineries keep chugging along at low levels we could see relatively cheap oil continue for some time while wholesale Gasoline prices continue to climb sky high.

[Newsseeker]

$this->bbcode_second_pass_quote('Tanada', 'I') think it all depends now on refinery utilization, if they actually get things up and running nearer normal then the oil stockpiles which have been depressing prices will start falling pretty quickly, when that happens the price will respond rapidly as ststed in the article. On the other hand if the refineries keep chugging along at low levels we could see relatively cheap oil continue for some time while wholesale Gasoline prices continue to climb sky high.

[DantesPeak]

WTI (West Texas) prices may no longer be representative of the world prices. A combination of refinery problems and a failure to refill the SPR has lead to a surplus of oil in the area where WTI and futures are priced.

[TreebeardsUncle]

So, are oil futures down because the U.S. refinereries are having so many problems that they can't process that much oil now? Then the gas futures are following the oil futures down?

G

[Newsseeker]

$this->bbcode_second_pass_quote('TreebeardsUncle', 'S')o, are oil futures down because the U.S. refinereries are having so many problems that they can't process that much oil now? Then the gas futures are following the oil futures down?

G