Who is buying the Oil?
Today crude oil rose above $82 a barrel after the Energy Department reported that US imports fell to a seasonal low and fuel inventories dropped.
Carl Larry the president of Oil Outlooks and Opinion LLC said Imports are down to a really really small trickle. we are not able to bring in as much oil as we would like to because the oil that is out there is going elsewhere. When the economy does start to grow and the refineries start to pick up runs that crude isn’t going to be there.
According to OPEC, the producers delivered 47 percen of its crude and refined products to the Asia Pacific region in 2008, up from 45 percent the year before. That compares with a decline in the US to 22 percent in 2008 from 26 percent in 2007.
Bottom line, China and India will continue to buy more oil if the recovery continues!
news source: bloomberg