oil demand

Yesterday, as expected, General Motors entered a structured bankruptcy designed to create a smaller, more profitable car manufacturer.  The bankruptcy was orchestrated by the Obama administration's auto panel and was designed to "save" as many auto worker jobs as possible.  We are now witnessing the rapid restructuring of the American automobile industry in a world of reduced new auto sales.  The challenges for auto sales are both government regulations and credit availability - both of which remain is a state of chaos. =>Continue Reading

As we write this blog, WTI prices are up over 7% this morning with crude oil trading slightly under $52 a barrel.  Yesterday, oil prices were in the $47-$48 range as the value of the US dollar was rising and the weekly inventory numbers were sour.  =>Continue Reading

Nobuo Tanaka, executive director of the International Energy Agency (IEA), was interviewed by the Financial Times (FT) yesterday and said that oil importing countries were receiving a $1 trillion tax break by lower oil prices.  He said that the IEA's analysis showed that if oil prices stay at around $40 a barrel for the balance of this year, the presumed $1 trillion in savings for oil importing countries would help contribute to their economic recovery, which is good in the long term for oil exporting countries. =>Continue Reading

Yesterday, crude oil futures fell by more than $4 a barrel to settle at $40.15 as negative economic and financial news sent shivers of fear about future oil demand.  At the same time, the Southeast Asia brokerage firm, CLSA, reported that its monthly survey of Chinese purchasing managers' confidence showed a rise for the third consecutive month.  The improvement in this leading indicator dates back to the implementation of the Chinese government's economic stimulus plan. =>Continue Reading