What drives oil price projections?  Energy Forum Thursday, April
28th, 2011 No Comments  The third modeling question, after
demand and supply, that we wondered about is the oil price
projection.  How do the EIA (Energy Information Administration),
the IEA (International Energy Agency) and OPEC (the Organization
of the Petroleum Exporting Countries) figure out a particular
price?  Do they take expected supply and expected demand and
then figure out a price which would put them in equilibrium? 
Seems like it is more projecting demand (although some of that
depends on price) and figuring out how much it would cost to
produce that much supply.  Here is how they describe it.   EIA: 
the International Energy Module (IEM) uses assumptions of
economic growth and expectations of future U.S. and world
petroleum liquids production and consumption, by year, to
compute world oil prices.  World oil prices are determined by
four broad factors:  non-OPEC conventional liquids supply, OPEC
investment and production decisions,