News from Notch Consulting, Inc.

December 9, 2010

Beware Gushing Crude Forecasts

Filed under: General — Notch @ 12:32 pm

Yes, oil prices are up, but Liam Denning at the Wall Street Journal doesn’t see another spike coming.

An excerpt:

First, there is more oil lying around. U.S. commercial crude-oil inventories covered 25.4 days of demand as of Nov. 26, compared with 19.5 days in December 2007. Stocks for the industrialized world as a whole are higher, too. There also is more spare capacity available. U.S. refinery use is running at about 84%, compared with almost 89% three years ago.

Meanwhile, the Organization of Petroleum Exporting Countries’ spare crude-output capacity is 6.1 million barrels a day, or 7% of global demand, according to the latest International Energy Agency report. The buffer was just 2.8 million barrels, or 3.2%, in December 2007.

Read the rest here.

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a free website or blog at

%d bloggers like this: