EDIT
With near-month crude futures now holding above $90 a barrel, U.S. oil contracts from November 2008 and beyond are now trading in a range from $89 to $85 a barrel, flattening the curve in later months as short-term factors compete to tug front-month prices higher and lower.
Analysts said the rise in part reflects the rising costs energy companies must pay to pump oil in producer nations within and without OPEC. Countries such as Venezuela and Russia, flush with profits from high oil prices, have tightened contract terms for access to their vast, low-cost reserves. In addition, mature fields are producing and requiring more investment to maintain output, while rising labor and material costs are also bolstering company expenses.
"The hopes for a flood of supply in the next several years appear unlikely to happen, particularly when looking at rising demand from the emerging-market economies," said John Kilduff, senior vice president of MF Global.
Energy firms must now concentrate greater resources on more expensive plays in deepwater offshore regions and nontraditional areas such as the Canadian oil sands. Oil company finding and development costs, which averaged $11.38 per barrel of oil equivalent in 2003-2005, rose to $17.23 for the 2004-2006 period, according to U.S. Energy Information Administration data. Those costs may jump another 50 percent by 2010, experts said, supporting prices for long-dated futures.
EDIT
http://www.reuters.com/article/reutersEdge/idUSN1128994320080111