Malcolm Graham-Wood
Independent Analyst
Yesterday the oil price was all over the place reacting to various market and international stories. There was an upward push on the back of the geopolitical worries concerning Saudi and Iran as various Middle East nations took their sides and most of the rest of the news pushed it down again. Amongst these were poor economic stats from China where the market was suspended limit down under the new system, injection today has brought some stability. The Gemscape report showed that stocks at Cushing were 480/- higher which doesnt bode well for the inventory stats this week, forecasts from analysts are for a fall in crude stocks but the little darlings have been way off the mark lately, maybe Santa brought them a calculator.
Finally there is always something to take away from the US auto driver and this week is no exception. With gasoline down at just over two bucks a gallon, today’s auto sales and those for the full year should be a record. If December is 1.7m then the year will be 17.5m, up 6%, the strongest on record. Neatly following that will be the gasoline demand numbers which went into free fall after 2007, if the numbers are anything like accurate, 2015 will nearly match that year and 2016 will at last break it, maybe even making around 9.3m b/d or more, which will make a bit of a mockery of the dwindling fossil fuel demand…
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