The age of triple-digit oil is here to stay

I don

“Global distillate markets look like raging bull markets, given the extent to which the incremental global demand barrel is dominated by distillates. OECD demand looks weak (as it has been for three years), but non-OECD demand looks robust and Chinese demand is improving,” it said.

Oil demand over the past 10 years grew 1.5 million barrels per day – and costs to find new oil keeps rising and rising. New sources of oil are likely to be found in logistically difficult (and expensive) areas such as deep water and in Arctic/Antarctic regions. There will also be a greater reliance on heavy and sour oil, which needs more refining.

According to Reuters, the current consensus oil forecasts is in the mid-$80 area. With the dollar continuing to plunge (which fuels speculation), geopolitical concerns rising and demand being driven by population growth and increasing affluence, I believe that the triple-digit oil age has arrived