Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
 
 
Energy Source Index
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

Current DateTime: 04:44:37 12 Nov 2009
LinksList Documentid: 23279729
Expiration DateTime: 11/12/2009 4:45:29 PM

Current DateTime: 04:44:37 12 Nov 2009
LinksList Documentid: 24355697
powered by digg
See All PostsEnergy Source
Text Size
Dec.12
1:57 PM ET
Wednesday, 12 Dec 2007
Outlook For '08: Predictions On Prices, OPEC, And More

Outlook 08
Melissa and I are taking part in the Outlook For '08 predictions, but we decided to split them up. So, out of the eight we are making, I took four and Melissa took four. That way, uou'll get double the pleasure next year, of seeing whether the two of us are right!

Here are my predictions and here are Melissa's, if you haven't seen hers yet.

#1 Prediction: Oil prices aren't likely to remain at these high levels:
This is the billion dollar question for 2008: How long will oil prices stay up here? The drumbeat for $100 oil seems to have been silenced for now and even long-time bulls that I talk to are turning bearish. It will likely take a war or a hurricane or some major supply disruption to get oil to that triple-digit mark. And while the market has grown comfortable with high prices, it hasn't been long that we've seen oil prices at these levels. Peter Beutel at Cameron Hanover sent me this interesting tidbit: Light sweet crude futures topped $90 dollars a barrel just 25 days in the 24 years that the contract has been trading at the New York Mercantile Exchange. Reuters latest poll of analysts sees oil prices averaging $74.40 a barrel in 2008. But strong demand, tight supplies and investors looking for a hedge against the dollar could keep the upward pressure on.

# 2 Prediction: Jolly Green Google will be a major "energy" company to watch in 2008:
The company is pouring tens of millions of dollars into into funding wind, solar and geothermal power. Even if oil prices moderate a bit, the push for alternative energy sources is likely to continue to go strong.

#3 Prediction: Non-OPEC producers pumping more oil may help to take OPEC out of the driver's seat:
Expect more surprises from non-OPEC countries. Brazil's latest offshore find -- as much as 8 billion barrels -- from the Tupi field seemed to come out of nowhere. The International Energy Agency expects non-OPEC production to rise a little over 2% in 2008. Citi's Tim Evans tells me that factor coupled with weak demand growth is likely to limit OPEC's market share next year. More oil from non-OPEC countries is good news for consumers. As Evans points out, the combination of rising non-OPEC production and weak demand growth normally translates into increased OPEC spare capacity and lower prices.

#4 Prediction: Expect my enthusiastic reporting on energy from the NYMEX to increasingly reflect my passion personal finance:
Even if oil prices moderate, consumers will still want to know how much energy costs are going to impact their transportation and household fuel costs and how energy prices will impact the costs of goods and services. Look for more frequent updates on gasoline prices and home heating costs -- and more important, tips on how to save money on your energy bills!!

Questions?  Comments?  energysource@cnbc.com

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • They may have wrecked their companies or saved our economy. Tell us what you think.
  • Big pharma embraces social media, but how much should a tightly regulated sector say on Facebook or Twitter?
  • A European dating site finds lovelorn singles from one country to be consistently uglier. Which is it?
  • Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
  • PepsiCo is ramping up its onsite health facilities for workers.
ADD COMMENTS
Remaining characters


Current DateTime: 02:33:18 12 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 11:27:46 12 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:10:05 12 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:12 12 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters