Light at the end of the oil tunnel?
According to Stratfor.com the price of oil should begin falling this year. Most of the geopolitical factors driving the price oil are stabilizing, the U.S. dollar is expected to rebound and new oil resources are coming online.
According to intelligence analysts at Strategic Forcasting, Inc., the oil crisis has peaked, or is near to peaking. Negotiations between the United States and Iran are bearing fruit with a fall violence in Iraq and the political structure of Iraq is beginning to shape up. The international slowdown in economies will have a dampening effect on oil prices as well.
More importantly, new oil finds in Brazil and extraction techniques to get oil from our shale fields in the Dakotas and Montana are beginning to bear fruit. This together with the continued development of the oil sands of Canada are creating an alternative to Middle Eastern Oil.
No one is predicting where the price of oil will settle, however, the economic environment probably won’t support endless price increases.
If these predictions are accurate, it will have major effects on travel and tourism dominated by the cost of jet fuel and exchange rates.
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