Well, after a few weeks away from the ‘Blogosphere’, whilst dealing with a busy period of heating oil demand, I’m back and it seems proper that I should take a look at what’s been happening and what predictions might be made.
Over the last few weeks, crude oil prices have risen to a nine month high, the longest rally in two years, but the last few days have seen the price roll-off a little, due to fears that the high price itself may cause a fall in demand.
The main reason for the high price is the continued fear of an escalation in the dispute with Iran, over the development of its nuclear capability. “There’s an undercurrent of fear about the Iranian nuclear situation and what that will mean for global supplies as people scramble to replace Iranian barrels,” said Gene McGillian, analyst and broker at Tradition Energy in Stamford, Connecticut.
There is also little hope of a resolution in the near future, with the US and Israel due to meet for talks next week, wherein it is expected that Israel’s PM, Benjamin Netanyahu, is expected to publicly harden his line against Iran and urge Obama to threaten Iran with military action. Watch this space!
Domestic Heating oil prices have been at an all-time high, riding on the back of crude prices, but also driven by the recent cold snap and restricted supplies due to a refinery tanker driver’s strike. Again, the future for heating oil prices looks bleak for heating oil users; the Unite Union are balloting their members over a further proposed tanker driver’s strike which, if agreed, could effect up to 90% of all fuel deliveries in the UK. The prospect for the seasonal drop in prices that we have traditionally enjoyed in the summer months up to 2011.
Visit the blog again for updates.
