Energy markets in transition

01/25/2010
This year will likely see a transition of energy markets back to "traditional fundamentals" of supply, demand, and inventories in place of the financial, currency, and equity market drivers that dominated 2009, said Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC."This would mean that rallies in the oil price above $80/bbl will only become sustainable in 2011," he said. Deutsche Bank analysts also expect natural gas prices to average $6/MMbtu in 2010 and remain close to that average in 2011-12.Oil prices in early January hit their highest levels since October 2008, peaking $10-12/bbl above December lows, as a result of rising equity markets, a wea...

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