Where is the Oil Market Headed?
While China is the major factor behind oil usage growth due to its robust economy albeit it has recently slowed ,the growth in automobile sales in China is soaring. Other factors that could very well affect pricing in the near future are (1) the Russian takeover of Crimea coupled with European and United States economic and political actions, and (2) Russia, being the second largest oil producer worldwide, could face a Russian oil & gas boycott (assuming the Russian oil & gas can be replaced) … not likely in the short term but the US could allow Europe to use fracking to build independence in oil and gas. Then there is the Middle East which continues to be very volatile. With this backdrop, who can really predict what is going to happen with pricing but one thing for sure it will be a very interesting energy market for years to come.