IEA says Oil Demand Will Fall
Apr 12th, 2008 | By Doug Casey | Category: Oil Investment & Alternative EnergyIn the energy market Friday, crude for May delivery spun its wheels, closing at $110.14/barrel, up just 3 cents. May reformulated gasoline gained 1.52 cents, to $2.8073/gallon.
Crude was flat as the International Energy Agency, an energy adviser to 27 developed countries, slashed its oil demand estimates. The IEA wrote in its monthly report that the world will likely consume 87.2 million barrels of oil a day this year, a drop of 310,000 barrels from last month’s forecast.
“Resurfacing doubts about demand … look to have emboldened sellers,” wrote John Kilduff, of MF Global.
That could be temporary. “There are some developments which point toward an easing supply/demand balance during the second quarter,” wrote Credit Suisse analyst Tobias Merath, which “should result in lower” oil prices during the second quarter.
Crude could decline below $90 a barrel, he said, and that “should then represent a good buying opportunity.”
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.