Weak Oil Demand
From ISI:
"* Based on our estimate for end-June OECD storage and figures for world oil supply, we estimate 2Q global demand averaged 84.2 million b/d which is virtually the same as the corresponding year-ago figure. Our working forecast had been for 1.4 mm b/d of growth.
* Having again lowered our 1Q 2007 global demand figure, the estimated 2Q figure left us having to reduce our full-year 2007 world oil demand forecast by 0.5 million b/d.
* While there seems to be an over-abundance of market focus on supply, it seems to us that there has been virtually no attention paid to the demand side of the ledger. What's even more notable is that since 2004, the biggest adjustments we've made to the oil balance have all been downward demand revisions."
So we have an oil glut, rising non-OPEC production, rising OPEC spare capacity and now evidence of weak demand. Why are prices so high again???
"* Based on our estimate for end-June OECD storage and figures for world oil supply, we estimate 2Q global demand averaged 84.2 million b/d which is virtually the same as the corresponding year-ago figure. Our working forecast had been for 1.4 mm b/d of growth.
* Having again lowered our 1Q 2007 global demand figure, the estimated 2Q figure left us having to reduce our full-year 2007 world oil demand forecast by 0.5 million b/d.
* While there seems to be an over-abundance of market focus on supply, it seems to us that there has been virtually no attention paid to the demand side of the ledger. What's even more notable is that since 2004, the biggest adjustments we've made to the oil balance have all been downward demand revisions."
So we have an oil glut, rising non-OPEC production, rising OPEC spare capacity and now evidence of weak demand. Why are prices so high again???
posted by Never-Limp at 11:43 AM
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