Schaeffer Collins Publishes Report Over Crude Oil Demand Increases

March 23, 2012 - PRLog -- Schaeffer Collins have published their findings on the demand fundamentals effecting the oil market. Emerging economies have caused natural commodities like Crude Oil to soar in price. The increasing of production levels for countries like China, India and now the U.S the demand for Energy commodities, in particular Crude Oil has increased. Consumers in countries like Latin America, China, and India are buying more motor vehicles, something that only 5 years ago was unheard of so the demand in Crude Oil is rising at an unprecedented rate.

The increase for demand from agriculture has now caused farmers to increase their crops to supply whichever commodity is most sought after on the market. The higher demand a commodity has, the higher the farmer will be able to sell it for. Some examples of profitable crops are soybeans and corn, which rose in demand when ethanol prices increased.

It is estimated that most arable farmers in the US have greatly increased their acres over the past decade to keep up with the increased demand for grain and therefore increasing their demand for crude oil. As the acres continue to increase, the price will continue to go up as demand will be needed. China has immediately begun to create stocks of oil while they still believe the price to be cheap. This panic buying is starting to stretch the supply fundamentals of the commodity. Additionally India is creating a similar stock holding facility.

The price of Crude has gone up 11% already this year, and is close to 17% over the previous six months. So far, it is the best performing 2012 commodity in market. Nobody knows what will happen to it in the future, apart from that it is going to go up in price, especially since it's 2008 claim to fame when it hit $150 a barrel.

Crude will also be affected by the Chinese government’s attempts to speed up their economy to a level that puts them ahead of the Western world again. It remains to be seen where oil will rise to or if it will again test the $150 mark which many analysts believe possible soon. The recent momentum has been almost unbelievable, so many investors are looking forward to the months to come so much so that their optimism is extremely worrying for those not in the market.

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