Hmmm, I'm firmly in the camp that oil fundamentals are sound. Supply currently sits at 85Mbpd while demand sits at 87Mbdp. During the recent price rise there has been an unprecedented volume of oil held offshore in tankers as trading houses speculate on gains outweighing the costs of demurrage. As prices start to come off, those same traders will be keen to get their oil to shore ASAP and consequently the price will temporarily ease.
This does not change the supply/demand issue nor the lack of investment in oil industry infrastructure.
However due to the increased costs of finding new oil and the rumour (I work in 'big oil') that emerging nations are buying up massive amount of "acreage" (oil speak for exploration ground) I will be seriously looking to unload my employee share holdings as I don't think these guys really have a grand long term future in oil.
