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Oil to go into a Crunch
As we all know we are currently in the midst of an all out credit crunch, every industry is feeling the wrath and most importantly people left, right and centre are being made redundant and losing there jobs it what could only lead to devastation for there families.
One of the worst effected industries at the moment though has to be the huge oil industries; we are even seeing the biggest oil millionaires in the world start to cut back on expenditure and make staff redundant.
But predictions say things will get better, but the oil industry is looking very bad as the International Energy Agency said that we could experience a big supply crunch by next year. Currently there are no problems because the demand for oil is at a very low rate, but when we start to recover from the devastation of the economic downturn there will be a problem in production, especially if they do not get any capital investment.
Oil's increase from below $20 in 2002 to a record high near $150 last year was fuelled in section by increasing demand from China and other emerging economies which strained supplies. The oil demand slowed down a lot in 2009 due to the shear devastation of the banking crisis that spread throughout the world.
But as things get better the demand will grow again for oil and if the sector does not get the backing that we need it to achieve, then there could be a huge shortage which would in fact rocket the prices sky high. We would have to pay more for our heating oil and our car fuel as the heating oil suppliers would have no option but to increase the heating oil prices to make them a healthy profit.
Blue - LeAnn Rimes