Higher Oil Prices: Asian Perspective and Implications for 2004-2005
Park, Cyn-Young | June 2004
Abstract
Higher oil prices are descending upon the nascent global economic recovery. Strong demand growth driven by the global recovery, combined with continuing instability in the Middle East, appears to underpin the oil price rally. The latest data on oil production and consumption from the International Energy Agency (IEA) suggest that tight supply conditions continue on higher than expected growth in global demand, partly reflecting fast-growing energy demand from Asia.
Given the relatively low inventory level and the limited refinery capacity, effects of supply interruption can be quite detrimental, which spurs speculative activities. The risk premium on fear of terror in addition to the tight market outlook appears to send the price of oil futures even higher in the short run. The development in the futures market - partly responsible for the hike of oil prices - implies that the recent rally in oil prices could stay.
Citation
Park, Cyn-Young. 2004. Higher Oil Prices: Asian Perspective and Implications for 2004-2005. © Asian Development Bank. http://hdl.handle.net/11540/1447. License: CC BY 3.0 IGO.ISSN
1655-5260
Keywords
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Gas Development
Gas Market Development
Oil and Gas Industry
Natural Gas Industry
Gas Industry
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Gas Reserve
Gas Distribution
Oil and Gas Leases
Natural Gas
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Gasoline
Natural gas supply
Offshore oil and gas leases
Gas leases
Natural gas reserves
Fertilizers and manures
Gasoline pump industry
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