Fuels getting higher

The petroleum spot price has always been on top. Since 2004 the Average Petroleum spot price has risen by 31% and further increased to 50% in 2005 and till date it has been doing well by making it 65$ a barrel. But there has been always tight conditions in the oil market. Sometimes the supply increases sometimes the demand increases as a result always the Gulf used the main center for supply. There are many factors which makes the oil market congested. They may be the geo-political developments, fears of potential supply disruptions and as always speculation.

Of course it is different issue that OPEC is the key supplier of crude oil and stands at the top in the crude oil market which currently provides about 45% of world supply of crude oil. The reason why the crude oil supply increased in 2004 is because the consumption of the crude oil increased by 2.9%. And in 2005 too the OPEC had increased its stability to meet the customer’s demand as the consumption figure was growing. And the consumption is still going on till date. We can see it live as the oil price today according to Bloomberg data is 66$ a barrel.

In my opinion, there will be a huge competition in the energy market and future will be dominated by energy market with energetic men owing energetic fuels like crude oil.