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Thought you might like to hear that first thing on a Monday morning - here's why:
Apparently, demand is expected to win out over supply in the years ahead, largely a result of increasing consumption by Non-OECD Countries. All the OECD countries are shown in blue below, non-OECD countries would probably be everything else.
They must hate being referred to in this way - being called a non-anything sounds condescending and with an acronym like OECD, you never know whether the first "n" should be capitalized. Here's a chart for the supply side - forecasts for non-OPEC oil production are being revised downward:
Now "non-OPEC" doesn't sound nearly as bad as "non-OECD" - why is that? Here's the scariest part - the world is counting on increasing output from Saudi Arabia over the next few years to help keep demand from getting too far ahead of supply:
Oh Dear! Does the world have enough drill rigs to make this happen? The entire report(.pdf) is free at the Wall Street Journal, maybe it would be a good idea to read the thing instead of just picking out charts. The first paragraph of the WSJ story($) must have created a sense of urgency to share this news with readers.
It looks like we're going to need a good recession.
CONTACT
INFORMATION Tim Iacono is the founder of Iacono Research which provides market commentary and investment advisory services specializing in macroeconomic analysis and commodity based investing. He also writes the popular blog The Mess That Greenspan Made. The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
The
International Energy Agency released their "
