January 2007 Oil Demand

Global oil demand growth was very weak in January of 2007, rising just ~100K million barrels per day. This may shock you, but Non-OPEC supply growth alone rose ~300k million barrels per day in January 2007. Yes, Non-OPEC supply growth alone is growing faster than global demand. That's what eventually happens in the free market when oil prices soar to ridiculous levels and attracts a ton of investment in new oil-finding equipment. OPEC will have to continue cutting production if they want to try and protect the price which will result in them losing more and more market share/power. OPEC may even lose some members who don't want to cut back which will result in even higher production. Do you see how this is bearish for oil prices? You do? Well, the market sure doesn't because oil prices are still at $60 instead of $40.

I will be on vacation through next Wednesday so I won't be updating for at least a few days. Try and have a good week without me.