China's oil demand is expected to rise by 15%

verfasst von off-shore-trader, 25.10.2004, 16:16

-->Monday, October 25, 2004



A lock-out knock-out for the oil bulls! Norway's oil companies threaten to walk and halt production to send a message that the on again, off again oil workers need a little more sick time! They say enough is enough and their deadline date is November 8. The threatened lock-out will keep the oil market worrying overtime. A production shutdown could keep the fever alive and push us to new all time highs again.



Who remembers the children's story of the Five Chinese Brothers? These brothers had many talents and one could suck up an entire body of water! We think there was a 6th brother never discussed that could suck up that much oil! China's oil demand is expected to rise by 15% according to the International Energy Agency. Their GDP is still blistering along at a feverish 9.1% pace year to year.



Something's gotta give some time! Crude oil thought the time was right just before the close on Friday and gave up some ground with profit taking. Yet with records being broken nearly daily, traders of crude oil and heating are wondering if this bull market will ever end. The loss of Gulf of Mexico oil and natural gas production is taking its toll. There's a buying frenzy going on due to traders who can't get enough because they fear they can't get enough for the winter heating season. The next few weeks are critical as we wait to see if we can build supply.



It's not likely we'll get much better with supply this week either. We've lost that Gulf production and there's no where to make it up. We need them back on line and that'll take time. We see crude oil supply down 2.0 million barrels, gas down 2.0 MB, distillates down 2.0 MB and refiners holding steady.



The Wall Street Journal reports the Russian government is planning to start working on expanding their oil exports in the next few weeks. Yet they warn that despite improvements the huge increase in oil output of the past few years will level off. A slowdown in Russian oil output is inevitable and it will be tough for consumers.



The Lundberg Survey has no good news for consumers either. They report gas prices in the US has hit an average of $2.04 per gallon. That's up 5 cents in just the past few weeks.



Jump on those profit taking breaks. We are! Call me at 800-935-6487 and ask for Phil Flynn if you want to get involved!

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gesamter Thread:

• China's oil demand is expected to rise by 15% - off-shore-trader, 25.10.2004, 16:16
  • Arbeitskampf in Norwegen - off-shore-trader, 25.10.2004, 16:23
    • MWV scheint keine Ahnung von Märkten zu besitzen - EM-financial, 25.10.2004, 17:27