- US implied oil demand (four-week average) hit an all-time high last week.
- Implied OECD oil market deficit this year is -1.1 million b/d. This compares to the +1.2 to +1.4 million b/d surplus IEA projected.
- The crazy thing to understand about this oil demand figure is that we aren't even in the high demand season yet.
- So looking at all of the data so far, there's really only one reasonable conclusion we can reach: If demand continues to remain strong, all of the energy agencies' supply and demand models need to be thrown out the window.
- This is bullish for oil prices as everyone is currently forecasting builds. So stay long energy stocks, buy on dips, and look for possibly even higher oil prices ahead.
For further details see:
U.S. Oil Demand Has Never Been Higher, And What This Means For The Oil Market This Year