The International Energy Agency (IEA) recently released its World Energy Outlook (WEO), an annual long term forecast for energy and the oil market. ~Read Story~
There is currently an oversupply of oil on the market, roughly 150,000 barrels per day...BUT as the globally economy comes out of this recession, demand will pick up. Just a slight increase from China & the US could see the daily supply fall to a 1 Million barrel shortage per day of supply. Over the last 30 years there has not been a solid correlation between the US dollar and the price of oil. We are in an unusual period, a global turn around or even a geopolitical event could see a spike in the dollar as well as in the price of oil. My views have been that oil echoes golds movement by 3 to 4 months. I've also set a $73 near term support price for crude and a + $90 by early 2010. RIG is selling off and very undervalued, I also like Pride International (PDE).
*click charts to expand images
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