Researchers See Oil Demand Growth Slowing, But Market Skeptical

Oil market analysts have argued for two years that prices will continue to soar until demand slows significantly.

Now, data released by the world’s main oil-market trackers in the past week is showing this year’s record prices may have already made a significant dent in the growth of oil consumption. While that would seem bearish for prices, the market remains skeptical, at least for now. In part, that’s because economic growth is running stronger than expected in the U.S. and China, the world’s leading oil consumers.

“If the market really believed that demand wasn’t growing, we’d had have a much deeper correction in prices,” said Phil Flynn, an analyst at brokerage Alaron Trading Corp. in Chicago.
Rigzone