U.S. Oil Fund Gets a Boost From IEA Forecast
Friday, June 11th, 2010Michael Johnston submits:
By Jared Cummans
Crude oil prices have been in a well-documented freefall over the last month, as prices have been hammered by a surging dollar and worries about softening demand from Europe. But prices got a boost on Thursday, as the International Energy Agency raised its predicted oil demand for 2010 by 60,000 barrels a day. At the same time, the organization expressed concerns about the U.S. reaction to the Gulf oil spill. According to the IEA, if a U.S. drill ban is put into place, output in the Gulf of Mexico will drop anywhere from 100,000 to 300,000 barrels a day by 2015. The prospects for strengthening demand and slumping supplies sent prices sharply higher on the day. The scenario presented by the IEA contrasts with the Organization of Petroleum Exporting Countries’ prediction that demand will drop by 10,000 barrels a day for 2010.
