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Permalink Reply by Wilma Watts on July 13, 2011 at 5:45

This is some of the most bullish news I have seen in years in the sector. Great for mineral owners, producers alike.
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IEA Crude Oil Report A Shocker: Supply Shortfall in Second Half - Demand to Reach Record Levels

Yesterday the International Energy Agency (IEA) released their monthly report. In our opinion it was a real ‘shocker’ to the extent that the IEA is usually has the most conservative outlook with regard to the crude oil markets—they have a tendency to understate demand and to overstate available supplies.

The IEA monthly report warned that unless OPEC increases production by at least 1.5 million barrels a day, world oil demand will surpass available supply during the second half of the year. The bottom line is that supply will fall short of the 89 million barrels of oil the global economy is expected to consume, which should push world oil prices higher – potentially substantially higher depending on global inventory levels

Separately OPEC warned yesterday that global oil demand will reach record levels in 2011 - and demand will continue to set records in 2012.

The forecasts are discussed today, along with investment firm's commentary on developments:

http://www.lsgifund.com/index_files/Page960.htm

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Permalink Reply by Hale Yayuh on July 13, 2011 at 7:03

Boone Pickens predicted this months ago.

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Permalink Reply by Wilma Watts on July 19, 2011 at 4:28

Japan Oil Demand May Triple - 1970’s Energy Crisis Revised?

Japan's demand for crude and oil products to fuel power plants could triple if the country shuts all its nuclear reactors due to growing public safety concerns - and Platts says we should “look for a run at the $119.00/b level by end 2011 for the NYMEX front-month crude contract.” Brent could “take a test of the $140.50/b level.”

These are price gains of 20% above current market levels. Meanwhile Italy and France object to further releases of oil from the strategic petroleum reserves to moderate prices.

Companies with crude oil assets in the ground in politically secure areas should benefit, including Evolution Petroleum (EPM). Trends in the energy sector are discussed today:

http://www.lsgifund.com/index_files/Page960.htm

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