Olivier Jakot, the Petro matrix analyst said that the weakness of dollar raised the prices of commodities such as gold and crude oil. The weaker dollar boosts the demand for denominated raw materials because it makes them cheaper for the consumers using stronger currencies. The recent update of the light sweet crude in April stood at $109.06 per barrel.
The Brent North Sea crude, which stuck 101.27$ was trading at a rate of $100.3 per barrel .Andery Kryuchenkov, Sucden analyst said that weaker dollar would support for oil failures. The investors still fear that a slower growth estimates more demand for energy. It is found that the world is hungry for oil.
OPEC which pumps 40% of world’s oil, states that it was not likely to change its level of production. On revising the past statistics it was found that oil was consumed at a rate of 87 million barrels per day in 2007. It is expected that by 2015 it would raise to 110 million barrels per day and by 2025 it would climb to120 million barrels. Much of the new supply will be from unconventional sources of hydro carbons.
CERA expects that the products from gas to liquid plants and ultra heavy oils like bitumen would be the recovery methods to meet the demands. A meeting is going to be held by the organization of petroleum exporting countries, to reconsider the production of oil. The key members of OPEC i.e. Venezuela, and Iraq have expected that oil demand would drop during the second quarter.
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