Demand For Oil Likely To Beat Supply Next Year

Max Dunn — Wed, 25 Nov 2009 08:20:00 -0800

Oil demand is predicted to rise by 1.3 million barrels per day (bpd) next year to 85.9 million bpd, according to a Reuters poll of the ten top oil-tracking analysts and organizations. This bodes ill for the prospect of meeting the world’s oil demand, which is feared to erode the huge crude stockpiles which resulted from the global recession.

Even though major US crude ETFs like the United States Oil Fund LP (NYSE: USO) and oil companies like Exxon Mobil Corporation (NYSE: XOM) are not showing robust results today, if the demand curve beats the supply curve next year, these stocks will see a major upgrade. "The key question for prices is supply," Barclays Capital analyst Costanzo Jacazio said.

Investment banks Goldman Sachs and BofA-Merrill Lynch have the most bullish outlook for demand, projecting 86.4 million bpd and 86.7 million bpd respectively. This is good news for the likes of USO and XOM.

(Posted on 11/24/09 at 1:45pm by Ed Liston on Benzinga: The Stock Idea Network. Demand For Oil Will Likely Beat Supply Next Year)

Eschew Obfuscation: Demand For Oil Likely To Beat Supply Next Year

Demand For Oil Likely To Beat Supply Next Year