Oil rose above $60 a barrel on Friday for the first time this year, bringing gains this week to almost 4 percent, supported by signs that deeper industry spending cuts may curb excess supply.
Also supporting oil, euro zone economic growth accelerated unexpectedly in the final quarter of 2014 as the bloc's largest member, Germany, expanded at more than twice the expected rate.
The price of Brent crude collapsed from $115 in June to $45.19, the lowest in almost six years, in January due to oversupply. Since January, mounting signs of lower industry spending have helped prices rally by more than 30 percent.
Pops wrote:Prices can only skyrocket to the extent that consumers can pay. Once it "attempts" to go higher, consumers most price sensitive reduce their consumption. When demand falls so does price, until supply is balanced.
Pops wrote:Personally I'd expect prices to return to their former range fairly quickly - within the year or perhaps 2 years at most, since much of the newfound oil wells decline in production 50-60-70% in a year and the current price prevents new drilling from taking place.
onlooker wrote:Yes Desu, most here are aware of the disastrous effects of lack of cheap oil. All you said here has been reiterated by others on other sites. It is both predictable and pretty much inevitable at this point given that we have not developed alternative energy sources to replace FF and that we have continued so reliant on cheap oil.
sparky wrote:.
The price of crude is cruising in the mid 50$/b a barrel range after lifting itself from the low 40$/b
the contraction in the industry is starting to bite the big boys R& D ,
it seems the Northern campaign of drilling in the Arctic is going to be a very poor thing .
onlooker wrote:ditto Desu
onlooker wrote:I mean I agree with what you say, it seems just too late to deal with the coming peak oil. Just wondering if you live outside US as maybe this word is mainly used in US
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