Global Demand Increases Overwhelm U.S. Demand Sluggishness

The (New) Truth About Oil

by  | published AUGUST 15TH, 2011

1. The industrial and production advances in China and India,

2. OPEC members such as Saudi Arabia and Kuwait, as well as main non-OPEC producers like Russia, have been withholding more of their crude

3. Regions usually ignored by analysts are registering accelerating demand.

The combination of these three factors completely overwhelms any sluggishness in U.S. demand figures. This offset is continuing

The global demand rise between June and the end of the year is poised to absorb all of the additional Saudi volume… and would have swallowed up continued IEA monthly releases as well.

The demand picture has not changed. In fact, as the market has revealed a number of times before, any short-term reductions in the price will merely result in an additional encouragement to demand.

Yet what must be remembered is the simple fact that developed countries no longer call the shots in oil demand.

http://oilandenergyinvestor.com/2011/08/the-new-truth-about-oil/

TRANSLATION:  Don't obsess about U.S. Demand figures when thinking about Oil Price mid to longer term.

0 comments:

Post a Comment

GOVERNMENT REQUIRED DISCLAIMER

Government Required Disclaimer: Crude Oil Gold Trading Room does not hold itself out as a Commodity Trading Advisor (“CTA”). Given this representation, all information and material provided by Crude Oil Gold Trading Room is for educational purposes only and should not be considered specific investment advice. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.