Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (8973)	3/19/2009 1:42:26 PM
From: Wharf Rat	1 Recommendation Read Replies (1) \| Respond to of 24213

Oil Prices: The Crude Rally is Supply-Driven Article By Keith Johnson Maybe crude oil’s rally today—Nymex futures are still above $50–isn’t due to either a weak dollar or hopes of economic recovery, but simple supply-side math. From Barclays Bank: The reaction to the latest OPEC meeting was, however, very different. The sentiment shift has been profound enough as to allow the rollover of targets to be taken fairly broadly as a sign of strength rather than weakness. Prices have rallied in the wake of the meeting, with the OPEC basket passing above $45 per barrel for the first time since the very start of this year, and with WTI moving back above $50 per barrel to its highest levels in more than three months. A broader market acknowledgment seems to have been made that the supply-side contraction has now overtaken the losses on the demand side, laying the basis for a period of tightening. In other words, rather than looking at the overall economy, or even just the demand side, the oil market is tallying up the actual balance between demand and supply. That is scary, Barclays suggests—and not just because of OPEC’s newfound discipline. Like the International Energy Agency and OPEC, Barclays trimmed its already-pessimistic outlook for non-OPEC oil production to a decline of 560,000 barrels this year and a full 1 million barrel decline next year. That basically amounts to a booby trap waiting in the path of the expected economic recovery blogs.wsj.com