Monday, May 10, 2010

Demand for crude rises although US stocks are, for now, high

SHOOT: 2 -3 big hurricanes would wipe out those surplus stocks. When it comes to energy, global complacency is high.

Crude oil demand will rise this year,
unimpeded by a debt crisis in Greece that may spread to other
European nations and slow growth, oil ministers from Saudi
Arabia and Algeria said.

Use of crude will rise in China, India and the Middle East

“Oil demand is very good, it is going to increase this
year,” Saudi Arabia’s Ali al-Naimi said to Bloomberg in Doha
yesterday. Use of crude will rise in China, India and the Middle
East, as those countries “are not affected by what’s happening
in Greece,” Algeria’s Chakib Khelil said in an interview.

Oil has retreated in the past few days from its 18-month
high of $87.15 reached on May 3. Crude futures dropped to $74.51
on May 7, the weakest intra-day price since Feb. 16. The
fluctuations have sent volatility to its highest in almost two
months.

Crude oil inventories in the U.S. gained 9.6 percent over
the past three months to 360.6 million barrels, the highest
since June 2009, according to government data.

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