SHOOT: This shows to what extent supply and demand are actually in balance. if demand drops, prices remain essentially the same. In this scenario, 'growth' and 'recovery' are pure fantasy.
An improving crude demand outlook helped bolster prices. On Thursday, the International Energy Agency in Paris said in its monthly survey that global oil demand would fall by 2.9 percent this year, better than its May forecast of a 3 percent annual fall. It was the organization's first upward estimate of demand in 10 months. "I think we're going for a test of $75," Molke-Leth said. "Every time you see a little pull back you have funds ready to step in." "Oil prices are discounting positive economic growth by around the end of the third quarter," said Christoffer Molke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "If that doesn't happen, prices at this level are overbought." |
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