The supply and demand numbers are wrong as usual. Japanese oil imports are down 17%. Korea 12%. Demand isn't at 85.27 for this year. And demand won't be 85 for next year.
"Supply and demand are ALL that matters to the price of oil and BOTH are very inelastic in the case of oil."
Demand of oil futures contracts by speculators is the reason that oil is at $116. Nobody is beating on OPEC's door because they don't have enough oil right now.
And if supply will be worse in the future, then why are oil futures in backwardation?
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Demand of oil futures contracts by speculators is the reason that oil is at $116. Nobody is beating on OPEC's door because they don't have enough oil right now.
And if supply will be worse in the future, then why are oil futures in backwardation?