Oil Pushes Above $83
There are a number of other causes for the increased price of crude, which was just above $70 two months ago. The first of these is the growth in demand for oil in China. The central government reported PMI rose to 53.8 in September from 51.7 in August. Assuming China can keep maintain its current currency price, exports from the People's Republic should increase as the economies of developed nations improve, albeit slowly.
The wild cards in oil prices are geo-political and supply driven. There is still political unrest in some of the larger supplier nations, particularly Nigeria and Venezuela. Any significant interruption in supply could push oil higher than it is now. In addition, the infrastructure of oil delivery is imperfect in some cases, including the aged pipelines that bring crude from northern Alaska and the regions of Canada near the Arctic Circle.
Most of the largest recent oil discoveries are well below the ocean floor and could take several years to exploit. In the meantime, the number of reasons crude prices will rise has begun to increase and could push oil back above $90.