As the price of Oil starts its downward journey towards 101 over the next few weeks, here is a look at the long term historical price trend of Oil, and use historical patterns and socio-economic behavior to predict future trends.
The Price of oil will start going down as the demand for oil will abate due to increasing fears of recession. This self fulfilling cycle will see a lowering of demand for Oil (and an increasing demand for Coal). As governments try to prop their economies and at the same time make it 'future proof' by moving towards electrification of transport, new Green, Blue and Grey Hydrogen technologies, and plastic substitution, the demand for Oil will continue to fall. This will eventually fall to the previous lows of 50 dollars a barrel (long term) before resuming an uptrend because more and more oil producing nations will move their economies and revenue sources to non-oil related sources, therefore turning off their taps. But eventually in the long term the price of Oil will come down significantly.
In the short term:
Oil will go towards 100 dollars a barrel, before it starts to increase again during the winter (where more EU countries may look towards Oil, Petcoke, and other Alternative fuels as a potential fuel for their foundries to replace the Natural Gas).
As a long term energy professional, it is easy to see how customer behavior repeats itself. Old Habits die hard.
For additional opinions or views, feel free to message me. You can also follow me on Youtube where i will start to post my analysis on a regular basis.
The Price of oil will start going down as the demand for oil will abate due to increasing fears of recession. This self fulfilling cycle will see a lowering of demand for Oil (and an increasing demand for Coal). As governments try to prop their economies and at the same time make it 'future proof' by moving towards electrification of transport, new Green, Blue and Grey Hydrogen technologies, and plastic substitution, the demand for Oil will continue to fall. This will eventually fall to the previous lows of 50 dollars a barrel (long term) before resuming an uptrend because more and more oil producing nations will move their economies and revenue sources to non-oil related sources, therefore turning off their taps. But eventually in the long term the price of Oil will come down significantly.
In the short term:
Oil will go towards 100 dollars a barrel, before it starts to increase again during the winter (where more EU countries may look towards Oil, Petcoke, and other Alternative fuels as a potential fuel for their foundries to replace the Natural Gas).
As a long term energy professional, it is easy to see how customer behavior repeats itself. Old Habits die hard.
For additional opinions or views, feel free to message me. You can also follow me on Youtube where i will start to post my analysis on a regular basis.
