Demand is outstripping supply and this is the bullet point of the problem. The U.S. refinery snags are adding fuel to the flames. Certainly, in the long term, prices will head higher.
But if there is supply disruption, there is not a lot of wiggle room as far as what OPEC and non-OPEC producing countries can do to boost production if needed. Spare capacity is really the key question,
It's been the demand side more than the supply side keeping this market as firm as it has been, so when you start to get some data showing questions on the demand side ... it is going to take out some of that premium.
It's been the demand side, more than the supply side, keeping this market as firm as it has been. So, when you start to get some data showing questions on the demand side ... it is going to take out some of that premium,
If there is a supply disruption, which there is a good chance there will be, they may not hesitate to release the SPR and we already have crude oil and products coming from Europe after Katrina.