My latest HoweStreet.com Interview (from yesterday) is up. You can listen to it by clicking HERE.
Also, I have a new MoneyandMarkets.com column today …
Get Ready for the Next Leg Up in Oil
by Sean Brodrick Wednesday, July 30, 2008 7:30 AMOil has pulled back from its highs, and now analysts are lining up to say the top is in. I’ve been saying all along that volatility is the name of the game in oil this year. Let me tell you now … [More...]
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- My Latest HoweStreet.com Interview Phil and I have a great time talking about oil, gold and more. LISTEN HERE. ...
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Dear Sean, You point out some important statistics in falling worldwide production and increasing demand in Euroasia which would cause a rise in oil price over the mid to long term. However, there is another important factor that
should bring down the price of oil within the next two to 5 or more years: Increasing production in Iraq. Over the past decades, due to the war and the reign of Saddam Hussein, oil infrastructure in Iraq had decayed, and Iraq has been producing oil at a
fraction of it’s full potential. However, recently, Iraq has agreed to let in a few of the oil majors (which had contracts under Saddam) back into Iraq to repair damage and start pumping oil again. This is a short term, 2 year deal to boot-strap the
production, and from that point on, Iraq will be open to bids from oil companies for the long term exploration contracts. I believe it is this recent news that has caused the 20% or so fall in oil prices in the past 3 weeks, and if Iraq does manage to
boost it’s production significantly (which I can’t see why it wouldn’t), that should keep prices lower than what they are today for many years. Sincerely, Luis Goncalves