Jim Letourneau's Blog

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Devasting Contraction in Oil Demand

According to OPEC...

World oil demand is already out of its high demand seasonality achieving nothing but devastating contraction.

OPEC sees 'devastating contraction' in oil demand

Sometimes it is best to use technical analysis and watch the price action. There is certainly no consensus opinion on the future of oil (see Cheap Oil Forever and Matt Simons on Peak Oil).

Don't get too freaked out. The market discounted most of the oil demand woes mid-2008 so it is probably more profitable to be open to the bullish case which is unfolding as opposed to the bearish case that everyone is aware of.