26/10/2004 09:01
“The high price of crude oil will not drop earlier than spring. For, the population of the northern hemisphere will have to deal with a tough winter. The global economy will have to deal with similar impacts, although these are hardly perceptible at the current stage due to the weak dollar”, Iraqi analyst, Ualid Handuri, chief editor of Middle East Economic Survey magazine and expert in economic-oil issues said on his interview to StockWatch.
Mr. Handuri said that the sharp increase in the price of oil is attributable to a number of factors related not only to the offer and demand but also to the political situation in the Middle East and the oil-producing countries and the contradictory US energy policy. An increase in the production of crude oil would be vain due to the insufficient number of refineries worldwide.
“Many services and organizations that are related to the energy market anticipated a reduced demand in the second half of 2004. However, these forecasts fell short and the production of crude oil dropped. On the other hand, Investment Managers took into account a number of factors, such as the political situation in the Middle East and the supply of oil to the US”, he said.
The complicated politico-economic correlations that have as a starting point the US effort to dissociate itself from the Arab oil and the fines that have been imposed to the oil-producing countries from time to time, did not allow investments for the development of new oil deposits.
Mr. Handuri said that the sharp increase in the price of oil is attributable to a number of factors related not only to the offer and demand but also to the political situation in the Middle East and the oil-producing countries and the contradictory US energy policy. An increase in the production of crude oil would be vain due to the insufficient number of refineries worldwide.
“Many services and organizations that are related to the energy market anticipated a reduced demand in the second half of 2004. However, these forecasts fell short and the production of crude oil dropped. On the other hand, Investment Managers took into account a number of factors, such as the political situation in the Middle East and the supply of oil to the US”, he said.
The complicated politico-economic correlations that have as a starting point the US effort to dissociate itself from the Arab oil and the fines that have been imposed to the oil-producing countries from time to time, did not allow investments for the development of new oil deposits.
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