As if you need another reminder about how the explosion in U.S. shale oil and gas production is rocking OPEC's world, you only have to go as far as the International Energy Agency’s most recent report.
U.S. oil production is soaring, hitting the highest level in 22 years at 7.55 million barrels a day! Oh sure U.S. oil supplies fell by 2.8 million barrels but that was mainly because U.S. refiners went on a tear producing product.
A wildly bullish American Petroleum Institute report and reports of refinery issues as well as a blowout had crude go crazy late in the day. The bulls have gripped control as the market has gone out of control.
The G-7 and Eurozone finance minters supposedly were on target for a cease fire in the so called currency war, but the rhetoric yesterday seemed to shake up the falling crude market as an ECB bank official took aim and fired.
Oil prices had the shackles removed and spiked higher after the Republicans caved and agree to a bill that will raise taxes on families that earn over $450,000. Of course for oil bulls any deal is better than no deal.
The International Energy Agency lowered its world oil-demand forecast for this quarter for a second time, citing weakness in Europe’s economy and disruption to U.S. fuel delivery and travel by Hurricane Sandy.