Malcolm Graham-Wood
Independent Analyst
The oil price is certainly consolidating at around these levels, at least for the time being but that as they say, is no indication of future performance. Whilst Ali al-Naimi said on Monday that Opec, sorry, Saudi Arabia, would defend market share ‘at all costs’ and that means down to $20 oil I think he had his tongue firmly in his cheek at the time, its great to have people listening to what you are saying again eh?
Yesterday the oil price rose on US GDP figures that showed the fastest pace of growth for 11 years, what will that be like when the lower oil price feeds through I wonder? The better than expected numbers produced a rally in the greenback which has repercussions in a commodity priced in dollars. It is worth having a further look at the retail gasoline numbers which I have been reporting virtually weekly of late as last week was another significant fall. At $2.40 a gallon gasoline was down another 15.1 cents on the week and 86.8 cents on the year which just shows what effect the lower crude price is having on wallets right across a continent that drives 50 billion miles a month…
Finally those teenage scribblers have been at the root beer again as they end the year with another shambles in the forecasting department. API inventory stats last night showed a build of 5.4m barrels whilst the overpaid buffoons in Wall Street banks had a consensus guess of a draw of 2.3m barrels, oh well lets hope Father Christmas delivers some brains in their stockings tonight…
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