Oil Price Thoughts Part 1: Short-Term Look

If one believes that peak demand for oil will occur around 2040, then there is plenty of time for fluctuations in oil price.

Here are some of my thoughts on what could impact oil prices (my thinking here is oil prices changing up or down by 25% or more):

Iraq: Saudi Arabia attempt to blunt Iran's influence

I came across this article from Al Jazeera discussing how there was a renewed attempt by Saudi Arabia to get Iraq to move away from Iranian influence.

Isn't this a little too late? I immediately recalled an article that I read about how Iran is supporting Iraq in their fight with the Kurdish attempt for independence.

Oil: Peak Demand Thoughts

I think the general time frame for the peak demand argument ranges from the early 2020s to the 2040s. A wave of news has recently hit with countries and cities pledging a variety of bans on the internal combustion engine. Per this Reuters link:

"Paris, Madrid, Mexico City and Athens plan to ban diesel vehicles from city centers by 2025."

Future of Oil

I started a twitter account based on the fact that someone dissed me by using the term "Equivalency Axis." I figured I'd start a blog based on that term, as well.

One of the issues that has fascinated me recently is oil. A few years back, there was concern about peak oil supply. Now, the more I read various articles, it looks like we're heading towards peak demand. This is driven by the assumption that the internal combustion engine will at some point disappear or at least be a smaller percentage of total transportation.