Crude oil prices: Are our oil markets too tight?
- Simmons and Co. International, Houston, TX (United States)
The answer to the question posed in the title is that tightness in the market will surely prevail through 1997. And as discussed herein, with worldwide demand expected to continue to grow, there will be a strong call on extra oil supply. Meeting those demands, however, will not be straightforward--as many observers wrongly believe--considering the industry`s practice of maintaining crude stocks at ``Just in time`` inventory levels. Further, impact will be felt from the growing rig shortage, particularly for deepwater units, and down-stream capacity limits. While these factors indicate 1997 should be another good year for the service industry, it is difficult to get any kind of consensus view from the oil price market. With most observers` information dominated by the rarely optimistic futures price of crude, as reflected by the NYMEX, the important fact is that oil prices have remained stable for three years and increased steadily through 1996.
- OSTI ID:
- 435729
- Journal Information:
- World Oil, Vol. 218, Issue 2; Other Information: PBD: Feb 1997
- Country of Publication:
- United States
- Language:
- English
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