This means Saudis/Russians will continue to be price setters for at least the next few quarters.

IEA Lifts 2008 World Oil Demand Growth Forecast

By Reuters | 14 Dec 2007 | 05:32 AM ET

World oil demand will grow more quickly than expected next year fueled by the Middle East and proving resilient to record-high prices, the International Energy Agency said on Friday.

The IEA, adviser to 27 industrialized countries, said in its monthly Oil Market Report that demand will rise by 2.1 million barrels per day (bpd) next year, up 200,000 bpd from its previous forecast.

“A lot of this demand is in the non-OECD countries, where we don’t have any downgrades in economic growth forecasts,” said Lawrence Eagles, head of the IEA’s Oil Industry and Markets division.

2 Responses

  1. does it mean CVX and TOT is the way to go on energy?

    considering the following:
    Across the board Mortgage interest freeze announced (US government)
    Across the board rate cuts (EU+US)
    Across the board coordinated liquidity injection
    NY prosecutor ‘talking’ to Wall Street firm
    Citadel buying paper from ETFC, Northern Rock nationalized or to be bought by Virgin, Sovereign Wealth Funds buying, C sold some paper to Dubai Fund, FNM and FRE sold securities, China Insurance buying a stake in Fortis, Singapore fund and Middle East investors
    buying a stake in UBS; HSBC, RBC, C and other banks now put SIV on their books, Warburg Pincus buying stake in WM

    the market is not moving, is there one last shoe to drop?

    and, finally, i would like to thank you for your insightful and sound commentary.


  2. Hi,

    Not sure what your question is?

    I see Saudis acting as swing producer and keeping crude wherever they want it- probably higher

    I don’t see the credit crisis altering agg demand yet, so we muddle through as long as exports hold up

    Dollar looks cheap enough to be attracting ‘real buyers’ who want to buy our goods and services

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