falling demand , page-5

Soon we will have SURPRISE SURPRISE! While the Gulf has been on holiday the world is short of the 20M barrels that would have been produced and will have to be replaced in October. The Chinese and American strategic reserves will need topping up. Another tropical storm is on the way.

The long term price is more dependent on the marginal cost of production including the (worsening) state of exploration success and green power politics. The marvels of modern accounting do a great job of hiding this - all those explorers who fail to find oil just die - at cost to oil investors but not the market - well short term anyway. Long term if the POO is too volatile there will be many fewer investors with lots less money.

But the forces bending the oil price are demonstrating their ability with mind bending financial backing/finess.