Whatever the price of oil and gas may be, you can always count on someone being unhappy about it. The debate over supply, demand, the global economy and whether we’re running out of fuel has had a push-pull effect on oil and gas exchange traded funds (ETFs).
There are two common questions regarding the price of oil: “Why is the price so high?” and “Why is the price so low?”
Generally, supply and demand dictates that when prices soar demand goes down. These days, oil consumption is low, presenting a possible oversupply of the stuff. Al Fin for Oil Price.com reports that as a result, one analyst is even predicting that that oil is likely to sink into the $20 to $40 price range. [Oil ETFs Rubbed By Foreign Growth.]
On the other hand…
According to Pakistan Observer, OPEC is “comfortable” with current oil prices and does not want to “rock the boat” as the world recovers from its worst recession in decades. The Organization of the Petroleum Exporting Countries is looking to balance an oil market still feeling the effects of the global economic meltdown. This could be a sign that OPEC is maturing and the producer bloc is weighing more factors than merely the spot price of crude, currently perched around $77 per barrel. [Oil ETFs Hit By Supply Glut.]