The oil market is up for grabs

Filed under: Forecasts, Oil

Paraphrasing the great Twain, if you don't like the price of oil, wait awhile.

Oil, which traded in a seemingly interminable $75-80 range for seven weeks, closed below $70 Friday -- down 84 cents to finish the week at $69.70.

And, as one might sense, the oil bears are scavenging in the woods, trying to change oil's narrative to one based on fundamentals: from a supply/demand standpoint, oil should be nowhere near $70. Inventories of several key indicators are at yearly highs or better. U.S. oil demand is down on a year-over-year basis, due to the pronounced recession, and may not recover to pre-recession levels for years. Meanwhile, Asian/emerging market demand, while rising, is so far not extraordinary.

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The oil market is up for grabs originally appeared on BloggingStocks on Fri, 11 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

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