Press Release: 05.04.10

Sustainable Oil price is $70-90 per Barrel

BOSTON - May 4, 2010—“The fundamentally sustainable oil price range for the next two years is $70-90 per barrel,” begins ESAI’s 2-year outlook for the global oil markets. According to the report, this price range is driven by a combination of factors. The marginal cost of crude oil such as Canadian oil sands encourages a floor around $70 and spare refining and oil production capacity encourages a ceiling around $90. More importantly, the report points out, Non-OPEC production should be stronger in the coming years than recent history would suggest. Along with impressive growth in OPEC NGLs and alternative fuels, the call on OPEC crude will only grow slightly.

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