In the short term,yes,oil prices will remain high. However in the long term thing may change because oil fields that were previously uneconomical to exploit (deep sea rigs,tar sands) begin to make economic sense and supply and demand eventually balance out. By the way,diesel motis have crazy performance these days,fuel conscious maskinis such as myself should consider them.

1000%

VVS-still waiting for an answer. Who is commercially manufacturing these vehicles (and siyo hybrid or the electrical version as both are unsustainable)?
Oil prices simply have no reason to fall below $50 short of a combined US/China economic collapse.
Those oil fields were abandoned for a singular reason. They are uneconomic to either drill into or the refining process was too expensive. Yes prices may rise to levels that make the fields economic,but then we are talking last year's peaks.
Between now and whenever quantitative easing is slowed down or reversed,prices will be driven up artificially (i.e. bubble). Beyond that,world economic demand will logically take up the slack.
Kenyan oil companies (specifically NOCK) can buy more quantity now as a hedge for the economy or take an outright hedge on prices (lakini not KQ-style)...

www.mjengakenya.blogspot.com

@mainat - Yep,ur truly a diasporan... Kenya lacks any form of long-term storage beyond 60 days (I am being very generous here).
**__** KQ(like many other airlines) were caught flat-footed when the hedges went against them but I would not trust NOCK with hedges. ***** Ironically,the firm that was in the process of building new storage facilities was Triton! Since the ownership of these (half-built) tanks is under dispute/court cases... even the little hope we had is kaput...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

Crude oil prices have been driven by the weakening of the U.S. dollar and rising optimism about prospects for a global economic recovery.

Oil prices have been fluctuating between $65 and $75 a barrel since the beginning of June,and many analysts saw the recent increase as a sign that prices would now fluctuate in a higher range. The rising price of oil has given a boost to oil drilling,and the rig count in the United States hit a six-month high last week.

One reason is that the dollar is incredibly weak against the euro,Because oil is priced in dollars,the cost of oil in euros or yen has changed little.


Success is not measured by what you accomplish,but by the opposition you have encountered and the courage with which you have maintained the struggle against the overwhelming odds'

@mainat - The problem with (many) diasporans - I was one once - is the 'why not do this' or 'this is what you should do'... without knowing the issues/facts on the ground... Take the oil industry... I am well aware (u know what to look up) of the issues... and unless there is a MASSIVE rethinking of how to provide for our needs nothing will happen...

*** The MAXIMUM 'storage' we have is 60 days... a crude cargo 15 days late throws us into problems... KPC is a bloody mess... We can barely meet Kenya's needs & losing the growing Uganda,Rwanda,Congo market to S.Africa (Congo/Burundi) & Tanzania!

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB