High Oil Prices
Who is handling the rise, variations of high oil prices? how it is affecting the economy of the countries of this planet Earth? To what is going on with OPEC would continue to increase prices? What happens with the demand? What will be the consequence of all this?, there are many questions that can not be passed before the reality which is currently facing with regard to petroleum in an interesting written on the subject, research of Universia Knowledge Wharthon and his interview with professors of finance Jeremy Siegel, author of The Future for Investors, and the Gestion Professor Witold Henisz, points out, that according to Henisz: we are experiencing a period of complex trade-offs between existing supply and demand, which is generating much uncertainty about the future trajectory of both variables. He considers that the great uncertainty that must try to resolve is how much capacity is Saudi Arabia and how much oil can be supplied in the short term. We simply don’t know it. For years not revised their estimates of reserves, and we simply don’t know if the estimates are conservative or if they have a greater capacity of its production. This is also true for many African and Latin American countries. We don’t know what is their ability and their levels of future reserves. For his part, Siegel says: do not believe that there is an easy way of increasing the offer – or at least one significant increase in the short term.
Most are economic reasons. It is difficult to blame speculators because there is a significant increase in the stock of oil, which would signal that the people is collecting it. There is a psychological component; everyone wants oil because they want to protect themselves against increases in its price. So, if I have some oil, at least I’ll have something whose price will go up.