IEA’s Oil Forecast Way Too Conservative!
Posted on Thursday, July 3rd, 2008 | In Asia, Current Market NewsThe International Energy Agency reported Tuesday that the oil market will remain tight and supply may not keep up with demand through 2013, despite their weaker demand growth forecast. The agency cut its oil supplies forecast for the next five years, saying that supply will rise more slowly than expected, leaving little spare capacity. Heck, the fact of the matter is OPEC already has very little spare capacity left!
The agency went on to forecast an increase in global oil consumption of an average of about 1.6% a year through 2013, with the greatest potential for oil demand growth coming from developing countries, especially in Asia. These developing economies, which also include South America and the Middle East, will account for about 90% of increased global oil demand in the next five years.
None of this comes as a surprise to me. If anything, I think the IEA’s report is conservative. My work tells me supplies will be tighter than the IEA forecasts, and demand will be more explosive!
Last 5 posts by Larry Edelson
- Chinese Researchers Confident of 8% Growth - January 7th, 2009
- China Accelerates Filling Up Its Oil Reserves - January 7th, 2009
- Cautiously, Steelmakers Raise Prices, Reopen Mills - January 7th, 2009
- Dollar’s fall last week is exactly what I’ve been warning about! - December 15th, 2008
- Real values ... real opportunities ... and real money ... - December 12th, 2008
 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.