Monday, May 12, 2008
Report Says Oil Bust in the Cards
Is $120 oil even real? Not if you ask the Saudis, or even Lehman Bros.
The investment bank’s oil expert said this week that the oil boom is due to bust. Economic growth across the globe will slow just as new refineries kick in, raising supply.
Recession or not, a U.S. slowdown will slacken demand sharply, right as new oil hits the market. "Supply is outpacing demand growth,” said Michael Waldron, Lehman’s oil strategist.
"Inventories have been building since the beginning of the year. We have pretty significant projects starting soon in Saudi Arabia, and large off-shore fields in Nigeria,” he said.
Lehman is now predicting prices at $83 a barrel in 2009 and as low as $70 in 2010.
Full Story...
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New & Used RV Classifieds on RVbasics.com Find Your Dream RV - List Yours For Sale for $19
The investment bank’s oil expert said this week that the oil boom is due to bust. Economic growth across the globe will slow just as new refineries kick in, raising supply.
Recession or not, a U.S. slowdown will slacken demand sharply, right as new oil hits the market. "Supply is outpacing demand growth,” said Michael Waldron, Lehman’s oil strategist.
"Inventories have been building since the beginning of the year. We have pretty significant projects starting soon in Saudi Arabia, and large off-shore fields in Nigeria,” he said.
Lehman is now predicting prices at $83 a barrel in 2009 and as low as $70 in 2010.
Full Story...
---
New & Used RV Classifieds on RVbasics.com Find Your Dream RV - List Yours For Sale for $19
