Will Oil Prices Remain Strong?

Will Oil Prices Remain Strong?

Financial expert Mickey Cargile takes a look at oil prices
Midland -- Oil prices reached their highest level in over a year last week. It was in part due to the continuous growth in demand from emerging markets, but that's only one of the contributing factors.

"Part of the reason for the spike is part of the political tension in Egypt...the concern of the Suez Canal being shut down and all the oil that's transferred through there," said Mickey Cargile, founder of Cargile Investment Management.
Cargile's oil price predictions from earlier this year are right on the mark. "We expected prices to be somewhere between $90 per barrel and $115 per barrel and that's exactly where we've stayed all year," he said.

Although Cargile predicts prices will stay in that range throughout the rest of the year, he also says there is a chance oil could go a little higher. But if that does happen, he doesn't expect prices will stay that high for very long.

"OPEC has announced that they want the price to be somewhere around $100 (per barrel), so they're cutting back their production which allows the price to stay up and helps absorb the additional production we have here in West Texas," he added.

Cargile also shared some insightful information on how long he thinks this boom will last, and how it's completely different from the boom we saw in the 80's (and it's not just because of technology.) We'll take a closer look at that in the next few weeks.

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