PropertyInvesting.net team
As we have been warning since June 2007, oil prices will rise to $125/bbl by end of 2008. They have already done so - this should be absolutely no surprize to our regular website visitors. We have a unique model that has forecast oil production up until 2015 based on our global industry experience, this oil demand model is based on oil prices of $125/barrel. As you can see below, there is a big imbalance between supply and demand suggesting oil prices will rise further. It is difficult to predict how high these oil prices may rise, but we conservatively predict $150//bbls by end 2008 and $200 by end 2009 - unless there is a significant recession in the western developed economies (USA and Western Europe).
The reason why we want you to be ahead of the game here is because all countries with growing oil exports should have property prices that are either stable or rising. Oil countries with increasing oil imports will find life difficult and property prices will be affected. The main growing oil centres are:
- Canada
- Brazil
- Angola
- Iraq
Brazil and Canada, along with Norway, UAE, Saudi Arabia, Kuwait, Russia, Qatar and Brunei are some of the main beneficiaries of high oil prices. Our analysis is unqiue, based on detailed numerical analysis and future predictions. We see oil bubbling along a plateau from now on - slightly rising - but ot by enough - the only way demand will fall to this bubbling plateau is if oil prices rise. We believe they would have to rise to $200/bbl to have a significant affect on demand - and alter people's driving and consumer behaviours. Part of the reason why demand is so inflexible is because of the already vey high gasoline tax in Western economies, as well as state subsidies in countries like Venezuela, Pakistan, India, Bangladesh and Indonesia. And to date there is no alternative to diesel trucking and gasoline car usage - alternatives are 5-10 years away.
So the big question is - which direction do ou think oil prices are heading - and do you think it will impact property prices in the UK and USA end 2008 to 2009?
