Connecticut Business News

For decades, the United States has the power and the ability to set oil prices at their convenience, the extent to which even has a weight limit of OPEC (Organization of Petroleum Exporting Countries) to price oil. However, before the oil crisis in the United States has ceased to be equally important in the price.

The proof is an event recorded by the U.S. Department of Energy, according to this body the fuel consumption decreased 1.6% from the previous year, but the decline in demand has not lead to a change in crude oil prices, which continue to increase.

This will cause a period of slow growth. As fuel prices remain high for a long time the company began to produce less to protect against the use of less extensive.

Company drivers and America is no longer a decisive factor in determining the price of oil, the market is now moving beyond the BRIC countries such as China, Brazil, and India also include Saudi Arabia.

On the other hand, demand for oil will continue to improve in all areas. While the U.S. has reduced its consumption by 4% since 2000, these countries have increased their consumption by 76%. Although it should be noted that consumption of the United States of 19.2 million barrels per day, and other countries and is 18.8 million barrels per day. In addition, China is a country where demand has increased over the last decade, an increase of over 100% to the consumption of 9.4 million barrels per day.

The Organization of Petroleum Exporting Countries (OPEC) has revised upwards the forecast increase in oil demand in 2011.

Global demand is expected to 1.23 million barrels per day (bpd) for a total average cost of 87.3 million in 2011, a total barrel per day, grows 50,000 more than expected last month; OPEC newsletter provides the latest monthly bulletin.

Understanding manufacturers from twelve countries, which produces 40% of total crude oil in the world, explains the higher estimates of demand growth in gross domestic product of the overall situation is improving and the predictions of the cold winter Europe and North America

This is the fourth consecutive month that OPEC revised its global demand for 2011. Oil prices have raised in recent weeks, with Brent crude oil prices on the London market, the psychological barrier of $ 99 first event since 2008.

“The size and the recovery of the global economic recovery, a significant effect on global oil demand this year, the Newsletter of the OPEC, adding that the weather in the northern hemisphere  slightly affected demand heating oil and fuel and petrochemical industries and transport are the main drivers of demand growth this year.

Regarding prices, said the producers’ cartel, was also in December, the average 85-90 dollars a barrel before to an average of nearly $ 90 since the beginning of the year.

“These prices are not explained by market fundamentals, argued today Abdallah Salem el-Badri, secretary general of OPEC after general in an interview with Austrian newspaper” Economic Journal, “adding that” speculators took the opportunity and pushed prices above.