Posted on 05/21/2015 1:39:25 PM PDT by bananaman22
Some market watchers, such as Cornerstone Analytics (CA), have consistently stated that the underestimation of demand, coupled with over-estimation of supply, will mask the growing call on OPEC oil in the second half of this year. CA recently noted that global demand outstripped supply by some 4 million barrels in April . This comes in addition to the mounting evidence that the oil market, via rig count declines, slowing production growth, higher demand and huge API crude inventory declines, is starting to readjust.
Be that as it may, Goldman Sachs (GS) seems to believe oil must fall to $45 by October (like it previously thought $30 oil was a certainty) to clear the market and rebalance, despite signs that a readjustment is already underway. When was the last time fundaments got ignored and prices went in opposite direction? As an aside, take a look at the S&P 500 vs. GDP growth, as one makes new highs while the other falls from 3.0 percent growth to under 1 percent so far this year!
(Excerpt) Read more at oilprice.com ...
To save his mussie friends 0bama will nationalize the oil industry and set prices higher so OPEC can undercut our oil industry and basically drive them out of business. To save the planet and all.
Yep, the price is too high. The Saudis need to drill more holes in the same fields and increase the supply, until their competition can no longer finance operations with junk debt.
And meanwhile fuel prices are skyrocketing on the Rockies in advance of tourist gullibility season. The powers that be figure that if tourists are soaked enough, they won’t have anything left back home to prepare for TEOTWAWKI and rebel.
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