The Energy Report for Wednesday 20/05/2009

Peak bleak: Is the world running out of oil? Again? Well if you look at the weekly drops from the API you might think so. But no, oil is rallying back up but not because of peak oil but perhaps due to the sense that the world is not so bleak. The VIX hit the lowest level since September so the passion for risk will soon heat up. And that intensity ofrisk desire means we shouldbe seeing more economic activity start sizzling up which means we should start seeing oil demand improve. We peaked all right, because we peaked out on being bleak.
Peak bleak: Is the world running out of oil? Again? Well if you look at the weekly drops from the API you might think so. But no, oil is rallying back up but not because of peak oil but perhaps due to the sense that the world is not so bleak. The VIX hit the lowest level since September so the passion for risk will soon heat up. And that intensity ofrisk desire means we shouldbe seeing more economic activity start sizzling up which means we should start seeing oil demand improve. We peaked all right, because we peaked out on being bleak.

International Business Times