Crude Firms Despite Another Increase In Supplies
Price forecasts for next year considerably higher.
Bryce Knorr
Published: Aug 12, 2009
What a barrel of oil worth?
With stockpiles on the rise and demand weak, prices should be falling, right?
Wrong. Crude continues to flirt with the $70 mark on ideas there will be better days ahead. Investors want to own oil. And until the government says otherwise, they're apparently ready to buy until further notice.
Ironically, the government, which is threatening to limit speculation, agrees with the funds. While forecasting weak demand, the Energy Information Administration nonetheless forecasts a barrel of crude will average almost $72.50 next year, up more than 20% from 2009 levels. And on-road, retail diesel will average almost $2.85 a gallon, keeping energy costs for farmers high.
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