In more bearish news for oil, Saudi Arabia's oil minister Ali Al-Naimi has stated that crude oil inventories could rise further. Saudi Arabia is one of the biggest producers of oil in the world.
Market watch reports Al-Naimi as saying that since a pickup in oil demand is expected in the third and fourth quarter of 2012, crude oil stockpiles are likely to be increased further in anticipation.
Naimi's comment reveals one interesting point- that the supply is high. Considering that it is only from excess supply that stocks for inventories are buildup, this oversupply could prove to be bearish for oil prices, which have in fact been falling for the past days. An earlier report by the Organization of Petroleum Exporting Countries (OPEC) also stated that the current supply situation in the market is comfortable. OPEC oil production is at its highest since 2008.
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Market watch reports Al-Naimi as saying that since a pickup in oil demand is expected in the third and fourth quarter of 2012, crude oil stockpiles are likely to be increased further in anticipation.
Naimi's comment reveals one interesting point- that the supply is high. Considering that it is only from excess supply that stocks for inventories are buildup, this oversupply could prove to be bearish for oil prices, which have in fact been falling for the past days. An earlier report by the Organization of Petroleum Exporting Countries (OPEC) also stated that the current supply situation in the market is comfortable. OPEC oil production is at its highest since 2008.
For more information Click Here
Stock Tips, Commodity Tips
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