Mass and energy-capital conservation equations to forecast monthly oil price

• Forecast of monthly oil price from 1994 to 2013 are checked.
• The four new parameters introduced by the theory are appropriate for the forecast.
• Price increase factor of extracted and selling resources, PIFE and PIFS.
• Critical initial price and extreme price of selling resources, CIPS and CIPES.
• Inflation, prime and discount rates are appropriately used in the forecast.

The mass and the energy-capital conservation equations are employed to study the time evolution of the mass of oil and the oil price evolution with time of the resources sold to the market in case of no-accumulation and no-depletion of the resources; i.e. when the resources are extracted and sold to the market at the same mass flow rate. The time evolution of the monthly oil price is studied from January 1994 until December 2013, investigating the detailed forecast resulting from the application of the present theory. The oil price can be reasonably forecasted using the prime and the discount rate interests as extreme limits. The method is then applied to forecast the oil price during months when the economic rates are still unknown.