Tensions over Iran and the sanctions against the country are the main reasons for surging oil prices.
The sanctions are set to take effect this summer and are expected to
reduce the flow of Iranian oil into the world market. While they are
anticipated, they
are not fully priced into the oil market.
In other words, once the sanctions go into effect, he expects oil prices to rise further. While
people may be looking at Iraq, Angola, and Libya to help replace the
Iranian barrels in the market, don’t count out the United
States.
http://www.cnbc.com/id/46765040
4 comments:
I believe the reason affecting the oil price lies in the demand, and some hedging. OPEC has increased its productions, and they seem to be capable of covering Iran.
As Americans continue to get impatient or fed up with oil prices, America will put more pressure on the government to drill for oil in the US. I hope we can successfully drill in America without too much of a negative environmental effect because it will drive oil prices down and create jobs in America.
I don't think it will be smart for us to drill in the United States due to environmental issues. Since we are incapable of making amends with other nations we must focus on alternate resources. We must put more interest and time into more environmentally friendly fuel substances. Therefore we would not have to rely on oil.
The debate regarding drilling for oil in the US is going to become much more prevalent as oil prices continue to rise. However, there are plenty of car manufacturers who have foreseen this issue and started making cars that run on little or no gas. Other sectors will have to follow suit eventually, fossil fuels do not last forever, so this may be the push they need to do so.
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