Oil prices declined in September and early October. As demand growth weakened further, offsetting the impact of hurricane-related outages and lower OPEC output. US crude futures fell from around $100/bbl in early September to below $90 in early October. However, prices remain very volatile, with unprecedented daily swings.
Absent a major worldwide economic downturn that significantly impacts global demand, West Texas Intermediate (WTI) crude oil prices are projected to average about $112 per barrel in both 2008 and 2009.
Source: Energy Information Administration. "Short Term Energy & Fuels Outlook." October 7, 2008.
World Energy in Review
- Global demand growing at an exponential rate (China and India major players)
- Global supply directly affected by political and industry instability
- Restricted access to oil in Middle East and Latin America
- Alternative fuels in premature stages; small percentage of energy consumption
- Brazil & Colombia offer politically stable and resource rich assets