Where is the oil market headed?
While China is the main driver of growth in oil use due to its robust economy, although it has recently slowed, China’s auto sales growth is soaring. Other factors that could very well affect prices in the near future are (1) the Russian takeover of Crimea coupled with European and American economic and political actions, and (2) Russia, being the second largest oil producer in the world, could face a Russian boycott of oil and gas (assuming Russian oil and gas can be replaced)…unlikely in the short term, but the United States could allow Europe to use hydraulic fracturing to strengthen its independence in oil and gas. Then there is the Middle East which continues to be very volatile. In this context, who can really predict what will happen with pricing, but one thing is certain, it will be a very interesting energy market for years to come.