[AirlinePilot]

http://ogj.pennnet.com/articles/article ... 230124&p=7

I found the following rather alarming. I think 60$ means very little in regards to demand destruction. The crack addicts will pay much more than this I think. I see 60$ within a month, maybe as little as two weeks.
I don't think it will do anything to demand....yet.


"For the first 9 days of June, US gasoline demand is averaging 9.51 million b/d higher than gasoline demand has ever reached for any month. The growth rate [from a year ago] is running at 3%, the fastest since March 2004. Distillate demand for June to date is running at 8.1%. There is absolutely no sign of flagging oil demand in the US. Indeed, oil demand growth is actually speeding up," he said.

"In short, the market needs to have a look above $60[/bbl in crude prices] to see if that changes the demand dynamic, because $50[/bbl] has achieved very little in that respect," Horsnell said. Moreover, he said, "Saudi Arabia is now the only producer in the world with any significant degree of spare capacity. We would then expect the market to continue to trundle on towards $60[/bbl].