Weak economy to depress oil demand throughout 2013: IEA

[Sherman A1]

LONDON (Reuters) - Global oil demand is set to be depressed by weak economic growth throughout 2013 while soaring U.S. oil production gives consumers a perfect cushion to withstand most supply outages, the International Energy Agency (IEA) said on Wednesday.

"The oil producing world today is in the midst of a once in a generation transition of far reaching consequences," the IEA, which coordinates energy policies of major consuming nations, said.

"Rarely has the market's ability to withstand crisis been so tested as in the two years since the start of the so called Arab Spring. Yet the market seems to have taken it all - civil uprisings, terrorist attacks, natural disasters, production outages, trade embargoes - in its stride," it added.

The IEA expects non OPEC supply to grow by 1.1 million barrels per day (bpd) in 2013 to 54.5 million bpd led by North American booming shale oil output.

http://news.yahoo.com/weak-economy-depress-oil-demand-throughout-2013-iea-092310619--finance.html

So will pump prices come down?

[libtodeath]

1. It wont matter because the criminal speculators will drive the price based on news reports

anything that they can hope is unsettling and they drive the crude price up then gradually sell their profits down until the next cycle.

[Arctic Dave]

2. You asked, "So will pump prices come down?".

The short answer is, No.

It can't. The ONLY thing keeping shale extraction in the game is high prices. Without them the margins are not there and it is no longer economical to produce.

This paragragh is a pretty interesting read.

"Rarely has the market's ability to withstand crisis been so tested as in the two years since the start of the so called Arab Spring. Yet the market seems to have taken it all - civil uprisings, terrorist attacks, natural disasters, production outages, trade embargoes - in its stride," it added."



Side note:

CT time.

Is the US government using the lack of demand for oil to persue antagonistic policies throughout the ME? Oil embargoes have always been the weak point of our economy and we had to tread lightly in the ME as to not upset the applecart but the last few years we have interfered with reckless abandon. Hmmmm.

CT/