EIA Lowers Oil Demand Projections

Saturday, October 10, 2009

The EIA lowered today its 2009 world oil demand forecast due to the global economic weakness, but predicted a slight recovery in consumption for 2010.

World oil demand will drop by 810000 barrels per day in 2009 compared with last year, down 200,000 barrels per day from its estimate last month.

"World oil consumption continues to be revised downward in response to the global economic downturn," the EIA said in its monthly short-term energy outlook.

The short term outlook for oil prices is bearish. A retest of the lows is imminent. But when will this contango be sorted out? Its impossible to buy and hold oil like this, but its a shorting paradise for the bears that get paid even if oil doesn`t drop in price. Quite amazing, not?

Trading oil futures is a very risky business. Be sure to risk only capital you can afford to lose. And off course, look for the lowest comissions.

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