Two Ways To Play: IEA Forecasts Reduced Oil Demand
Strengthen your portfolio in good times and bad.
The International Energy Agency cut its long-term forecast for world oil demand due in part to lingering effects from the global recession, as well as new policies designed to cut the use of fossil fuels.
The IEA is said world oil demand may grow by just six million barrels to about 91 million barrels a day by the year 2030 if a climate deal is signed and implemented. This represents a downward revision of one million barrels a day from the agency's forecast a year ago, according to the Wall Street Journal.
Consumption is forecasted to increase to 88 million barrels a day from the current 85 million per day. This is below the IEA's projection made last year of 94 million barrels a day.
From the Bull Pen: World oil demand may still be suppressed, but bulls know crude prices could still head higher because of supply and currency issues. For oil exposure, the gap up in Transocean (RIG) could be an opportunity. One can fade (read: buy) any weakness into gapfill (85.40); a sell stop can be set below that level.
From the Bear Cave: Bears can look to Darden Restaurants (DRI). One can consider playing the downside into 34 resistance. A buy stop can be set above that level.
A Quick Check Around the World
Asian trading closed with the Nikkei 0.63%, India -0.35%, Hang Seng 0.27%, Shanghai 0.10%, and Taiwan 0.75%.
Across the pond, we see the FTSE 0.27%, CAC 0.07%, DAX 0.24%
As of 8:20 a.m. EST, S&P Futures are trading -4.25 to 1087.50 and Nasdaq futures are -3.000 to 1763.50.
A Look at Commodities
Over in commodities, crude oil is -0.22 to 79.21 while gold is -2.50 to 1098.90 this morning. Silver is -0.18 to 17.290 and copper -2.155 to 294.60.
The dollar Index is +0.1300 to 75.2650.
No events on the radar today, but click here for the full list of this week's events.
Good luck today!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter