{"id":272415,"date":"2010-02-03T14:07:00","date_gmt":"2010-02-03T19:07:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:390798"},"modified":"2010-02-03T14:07:00","modified_gmt":"2010-02-03T19:07:00","slug":"oil-may-not-recover-in-sync-with-broader-markets","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/272415","title":{"rendered":"Oil may not recover in sync with broader markets"},"content":{"rendered":"<p>The so-called Great Recession hit crude markets hard because with industrial activity slowing down, the need for massive amounts of energy dipped. Now a recovery is emerging, but the oil markets may not recover in sync with the overall markets.<\/p>\n<p>Global demand for crude in 2009 ended 0.3% over its 2008 level, but compared to 2007, it was down about 2%, according to Dina Cover, an economist at TD Bank.<\/p>\n<p>\u201cWith consumption still quite weak, there is plenty of oil to go around,\u201d the number-cruncher said. Total global production increased by 1.6% in the fourth quarter, and was 1.3 million barrels per day greater than demand. \u201cIn fact, after showing great improvement through most of 2009, the supply-demand balance shot up dramatically during the last two months of the year.\u201d<\/p>\n<p>Global inventories are at 95 days supply, compared to the five-year average of 86 days.&nbsp; <\/p>\n<p>\u201cWhat&#39;s more, OPEC [the Organization of the Petroleum Exporting Countries] spare capacity jumped from 1.5 million barrels per day to 4.4 million barrels per day in 2009, and is expected to continue to increase through 2011 to nearly 6 million barrels per day as new capacity comes online.\u201d<\/p>\n<p>Put it all together and despite a rebound in demand for oil, the excess supply, coupled with increasing capacity, will keep the lid on crude prices. TD predicts oil to stick around $80 per barrel in 2010, and climb to U$85 in 2011.<\/p>\n<p><a href=\"mailto:ctait@nationalpost.com%20\">Carrie Tait <\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=390798\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The so-called Great Recession hit crude markets hard because with industrial activity slowing down, the need for massive amounts of energy dipped. Now a recovery is emerging, but the oil markets may not recover in sync with the overall markets. Global demand for crude in 2009 ended 0.3% over its 2008 level, but compared to [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,7],"tags":[],"class_list":["post-272415","post","type-post","status-publish","format-standard","hentry","category-energy","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/272415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=272415"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/272415\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=272415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=272415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=272415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}