How can we interpret the effects of Oil Price within a trending band of 90-100 USD per barrel.? It can Boost CAPEX Investment or it could affect the demand.?

Taking into account that we are just starting a new period of high price, particularly I think that OPEC+ has a real challenge, members must ensure the balance that avoid a demand crash and at the same time the global oil industry needs a complete recovery from the recent downturn. The CAPEX investment that could be directed to new developments, reserves additions (Guyana Offshore Projects for example) can ensure reliable supply for the next decade.

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The thing to notice is that with the strong $ the oil price is already very high for some countries add in there was enough oil on the market last year before Iran and Venezuela started to cut exports and the actual need for more oil is not that high when those two countries come back online add in US shale will increase production once they get some more pipelines next year and the actual need for new development is not that high. Anyone sinking CAPEX will be aware that these prices may not last long enough to get a decent return on it.

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Where is this "trending band" of $90 - $100 of which you speak?

Don't put the cart before the horse.

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Assuming oil pricing gets up to where you speculate it might end up, then the immediate reaction will be to replace heating oil with wood stoves and pellet furnaces, in areas where there is no access to gas.   That product substitution will be permanent; even if oil then crashes to $40, it will not motivate a consumer who has just installed a stove/furnace to replace it again with oil.  That heating oil will be out the door. 

The other result is that oil will be dropped as a feedstock for plastics, where gas can serve as a direct substitute. I suspect that switch is well underway. 

Transport fuels take a lot longer to change, but remember that in dense cities, there is an up-swelling movement to go to electric bicycles. I was in Manhattan recently and was stunned to see the public streets have lanes (and across from Grand Central Station, the entire street) closed off and bike racks for over a hundred bicycles installed, all rentable with a smartphone app. Amazing to see how fast that is going - and the big dent that that will take out of the traditional taxi market. 

Finally, advances in engineering are very rapidly propelling the municipal bus market to all-electric, with recharging done at loading points. Buses get about two miles per gallon, so  the retirement of diesel buses and the replacement with new electric buses will have a big impact on transport fuel demand. 

Finally, I again mention the construction of tunnels.  Building 100 tunnels on the 100 major roads in the USA where they pass over mountains should cut total US fuel consumption by between 30 and 40%.  That program would run about $100 billion - not that much for a nation as wealthy as the USA.  That would collapse pricing for oil.  Cheers. 

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