OGJ Newsletter

Market MovementOil demand slumpsIt is clear now that there remains little prospect of significant recovery in oil demand growth this year. After the Sept. 11 terrorist attacks on the US, prospects for global recession have deepened, taking oil demand with them.After several weeks of seeing oil prices hover below the lower end of its targeted $22-28/bbl band for the OPEC basket of crudes, OPEC has sent clear signals to the market that it intends to cut production again in order to bolster sagging prices (OGJ, Nov. 5, 2001, Newsletter, p. 5). That accord is likely to be hammered out ahead of the Nov. 14 ministerial meeting in Vienna, so what emerges from OPEC then won't be a surprise. N...

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