The US is releasing a million barrels a day from reserves in hopes that oil production from US companies increase by that amount in time for those planned releases to stop. But what if it doesn't?
Great post as usual. Barring a severe global recession demand is simply increasing with supply constraints built in (i.e., discouragement of drilling in recent years). As India and China and the U.S. economies grow - however slowly - demand will keep a floor on crude. Moreover, notice how air travel is doing well and there are new routes being planned for next year by multiple airlines. This will add to demand as well possibly substantially. Yes, Broncho astuteley points ut the EIA has been consistently wrong. I recall they predicted peak oil years ago. Did not happen.
Great post as usual. Barring a severe global recession demand is simply increasing with supply constraints built in (i.e., discouragement of drilling in recent years). As India and China and the U.S. economies grow - however slowly - demand will keep a floor on crude. Moreover, notice how air travel is doing well and there are new routes being planned for next year by multiple airlines. This will add to demand as well possibly substantially. Yes, Broncho astuteley points ut the EIA has been consistently wrong. I recall they predicted peak oil years ago. Did not happen.