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A big leap ahead for Oil prices in 2012 |
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January 4th, 2012
by: Tyler Wood
One sixth of the world's oil shipments pass through the Strait or Hormuz every day. The tensions here are running high as new trade restrictions have been placed on Iran and the latest warning from Iran to stay out of their strategic waterway. A standoff with Iran would definitely effect the global economy, slowing oil supplies at a time when the world needs every drop. The global oil demand is expected to rise to a record 89.5 million barrels per day in 2012. However, oil producers expect to meet this demand, but in the face of a prolonged conflict , it could lead to shortages and fuel price spikes that stifle global economic growth.
The spike in oil prices will further fuel concerns that oil prices are likely to stay above $100 a barrel for much of the year. A recent poll of analysts by Reuters predicted Brent would average $105 a barrel this year, down fractionally on 2010's record high of $111 a barrel. In addition to tensions with Iran, the spike in prices has also been driven by the publication of encouraging economic data in the US, China, India, and some eurozone countries, which sparked optimism that 2012 could deliver a better than expected economic recovery.
Today, January 4th, the Bald Eagle Trading Company's Survival Plan and Diversified Commodity Basket took a long position on oil as it tracks a medium to longer term trend of increased oil prices into Q1 of 2012.
Crude Oil Chart
Best Wishes,
Tyler Wood
Alternative Investment Specialist
Google Voice: (786) 361-4415
Mobile: (617)-899-6745
Skype: tylerw
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