Oil Demand Threatens Oil Prices
Thursday April 16, 2009
Rising oil stockpiles in the US and other markets threaten to trigger an oil price slide as current oil prices drop slightly. This coincides with data that suggests US stockpiles alone have apparently risen to the highest levels in 19 years (according to a government report).
In a supply and demand market, oil prices can only be expected to fall as markets slow in the face of global economic downturn. In contrast, recent Wall St gains have seen stock markets gaining momentum as speculators show optimism towards the future.
Unfortunately, many fundamental business reports deliver a gloomier outlook, and this is backed up by the Organisation of Petroleum Exporting Countries. OPEC cut its supply predictions for the eighth consecutive month in a row, and demand in 2009 seems likely to continue to retract on business and job reports.
Despite grim reports, oil prices and crude oil remains 10% higher for the year overall, but obviously this is substantially lower than 2008 figures. Check out the latest oil price charts to see the oil prices today.