I do agree with The International Energy Agency (IEA) predicting that the low oil prices of recent months will not last much longer, and will likely recover later this year. If you noticed it is already start going up.
It is not going to be up at least for few month, nowadays , it is fluctuating.
Ahmed,
As far as we can see from the discussions and production trends, there are countries producing below their full capacities. Add to that, there is advancement in the technology of fracturing and thus shale oil/gas resources development will be at lower cost. More supply shifts the price equilibrium point to lower for the same demand. So, unless demand suddenly goes high (unlikely), I believe there is no reason for the price to go up.
In the short term (5-10 years), the only possible increase I can see in oil and gas price is for a short period of time (limited time price increase) due to geopolitical reasons.
Thanks for the question,
PS: let us know if you discover something contradicting the above discussion so we start buying stocks.
- Badges
- Science topic
- Similar topics
- Engineering
- Petroleum Engineering
- Oil