Supply and Demand
From
Bloomberg:
Oil Touches $37 a Barrel on Forecasts U.S. Supplies Increased
Crude oil fell, dropping briefly below $37 a barrel in New York, before a report forecast to show that U.S. inventories rose for a third week on ebbing demand.
Crude stockpiles probably increased 500,000 barrels in the week ended Dec. 19 from 321.3 million the week before, the 12th gain in 13 weeks, according to a Bloomberg survey before today�s Energy Department report. Idemitsu Kosan Co., Japan�s second- biggest refiner, will cut crude processing next quarter because of weak demand in the third-largest oil-consuming nation. Last week, OPEC announced a record production cut to counter declining consumption.
�With more stock builds expected this afternoon, oil is on course for $35,� said Robert Montefusco, a broker with Sucden Financial Ltd. in London. �What we�re seeing today is the general picture of weak demand being exaggerated by the lack of volume in the market.�
Supply meet demand... One nice side effect is that it is putting the squeeze on Venezuela. Maybe Chavez will be a little more careful about how he governs and his nasty little
habit of nationalizing privately owned businesses.
Posted by DaveH at December 24, 2008 9:02 PM