"It's given us a little bit of a boost, but how much further we go is hard to say, I don't believe we should be here in the first place." ," - Tom Bentz, (a broker and analyst at BNP Paribas Commodity Derivatives)
- The international agency warned in a new report that lower prices have prompted energy companies and investors to defer about $170 billion in investment, equivalent to about 2 millions barrels a day in future supply.
"What we're saying is that come around 2012 the impact of this big recession on oil investment and capacity, if current trends continue, could be severe with much higher oil prices," IEA chief economist Fatih Birol
- Adding jitters to the market, major oil exporter Iran appears to have successfully test-fired a ballistic missile, a U.S. official confirmed. Iranian President Mahmoud Ahmadinejad announced earlier the country had tested a new two-stage, medium-range missile.
For the past three weeks oil has been way ahead of itself and finally it is starting to slowdown after today’s weekly oil reports showing US crude oil inventories remain high and the agency reported demand is still poor down 7.6% from a year ago. I guess this is a very sensitive balancing market between the future and the current state of the economy. If oil goes too high now, consumers will be hit hard as alot of them are already having concerns with their financial security. On the other hand, if oil maintains itself below these levels, investments and explorations become discouraged making way for a huge supply shortfall in the future.
Source: WSJ & Marketwatch
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