Oil prices have been on an upward path since the beginning of February supported by bullish and better-than-expected US economic performance where the government announced three per cent annual economic growth in the fourth quarter of 2011.
The market was also supported by positive manufacturing data out of China, and the recent agreement in the EU to bail out Greece and to agree on a new financial pact and a major fund to avoid future crisis.
But the good news stops here as oil demand in 2012 is increasingly revised downwards by all forecasters. In its February Oil Market Report the International Energy Agency (IEA) revised demand to 89.9 million barrels a day (bpd), down by 300,000 bpd from a month earlier report. The call on Opec oil in 2012 is now forecast by the IEA to be only 29.9 milion bpd, down from 30 in 2011.
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