A group of Analysts from the Erste group feel that the heyday of the Oil Industry has already reached fruition and it is now time to invest more readily in the Gas Industry.
Opec already agree that the price for a barrel of oil is now unlikely to ever exceed $80 in the future
Analysts also believe that there is too much false hope being placed on the theory that once the economy recovers sufficiently that Oil prices will once again begin to inflate. Instead it is much more likely that the reason demand for oil has increased since the start of the recession is because governments have gone to great lengths to create an artificial economy that cannot last once economics is allowed to return to its own devices. Once the Central no longer intervenes to allow an almost zero percent interest rate and countries no longer sink billions into economies with artificial stimulus packages then the demand for oil will once again decline as will the price.
Experts have also predicted that the current oil price, is just a side effect of artificially stimulating economies and is a situation that is doomed to failure in the long term as it is not a naturally occurring economic situation. Analysts are also very critical of the blind trust that is being placed in rapidly expanding economies such as China to keep increasing demand in the long term.
The IEA has already stated they think Oil supplies will hit their peak by 2020 and if demand is to remain in line with this new supply then the equivalent of 400% of Saudi Arabia’s current output capacity will need to be sourced to maintain stability of price control.Andrew Reid, Staff Writer, Gulf Jobs Market News