Oil Supply – The Little Engine That Cantarell

Nobody can consistently predict where short-term oil prices are headed because they just can’t know what new news is coming or just how trigger-happy the traders will be on any given day. The near-term fundamentals are only slightly less muddy. Clearly we’re experiencing some degree of demand destruction as the global economy weakens, people drive less, and alternative energy substitution makes a very small dent. On the other hand, growth in China, Russia, and India is still robust with more and more people in these countries trading in their bicycles and rickshaws for cars every day. It doesn’t hurt that Tata Motors is now mass-producing a $2500 car for the Indian market. Also, it was recently reported that the Russian car market is now the largest car market in Europe by sales, with a 41% year-over-year increase in sales in the first 6 months of this year.

Istockanalyst