Oil Supply / Demand
Posted: Thu Mar 08, 2012 4:36 pm
The International Energy Agency released crude oil supply and demand statistics for 2011 last month. The numbers were quite telling – and somewhat shocking. Global daily crude oil demand averaged 89.03 million barrels per day. Global daily supply, due to production interruptions from the Arab Spring among other factors, averaged 88.40 million barrels per day. The 630,000 barrel per day supply shortfall explains why global crude oil inventories have plunged and oil prices have risen.
Oil demand is expected to continue to increase in 2012 to 89.9 million barrels per day.
The question we now face: Where will the additional supplies of crude oil come from, especially if Iran’s production is taken off the global market or the Arab Spring continues to disrupt production? The global trends in supply and demand are formidable.
Keep your portfolios heaviy weighted to oil. Even a slight supply disruption will cause a sharp increase in oil prices.
Oil demand is expected to continue to increase in 2012 to 89.9 million barrels per day.
The question we now face: Where will the additional supplies of crude oil come from, especially if Iran’s production is taken off the global market or the Arab Spring continues to disrupt production? The global trends in supply and demand are formidable.
Keep your portfolios heaviy weighted to oil. Even a slight supply disruption will cause a sharp increase in oil prices.