The Great Crude Oil Glut

From ISI:

"There had been indications that Saudi Arabia's Khursananiyah project (which adds 800,000 b/d of capacity) would start this month, or 6 months ahead of schedule. Indications are that the project will stay on the original schedule and ramp up in December.

We think the issue about not bringing on Khursananiyah earlier than planned relates to a decline in the demand for Saudi oil over the past year owing to weaker than expected demand growth and higher non-OPEC supply. This is evident in tanker rates."

Yet the price of crude keeps going up....ARGH!!! At least the futures curve is flattening which suggests investors are becomming less bullish on the long-term price outlook for crude....about time! This swindle has persisted for long enough!