OIL PRICES
Crude Oil – The Global Engine,Stalled and Flooded
As Morgan Stanley says and we agree : “We are bearish on oil demand and as a result on oil prices owing largely to the weakening economic reality. Our base case envisions West Texas Intermediate (WTI) averaging $35 per barrel in 2009, reaching a bottom in 2Q09, when we see prices falling to $25/bbl “.
But the big problem will arrive when demand is likely to improve at the very time that the lagged impact of lower prices begins to adversely affect supply, ultimately sending prices much higher…
