“The stats are very bullish.”
– Tony Rosado (subscription required), IAG Energy Brokers
Oil closed today at an all time high around $80 a barrel.
Despite OPEC deciding to raise production by 500,000 barrels a day yesterday, oil still managed to hit an all time record (subscription required).
And then today’s government report showed a drawdown in crude inventories which caused oil to shoot towards $80 (subscription required).
Personally, what I find interesting is the disconnect here between the numbers like supply, demand and inventories and the fact that a slowing economy will reduce demand for oil. In other words, even though demand is likely to decrease supply is so tight that that’s sustaining record prices. But I wonder if slowing demand will eventually take some of the punch out of oil.