Crude Oil May Decline as US Inventories Surge

My comment: Crude oil may also rise further as global demand grows. It's all about the market. Isn't it?

Crude Oil May Decline as U.S. Inventories Surge, Survey Shows

March 25 (Bloomberg) -- Crude oil prices in New York will probably fall next week as rising production from the Organization of Petroleum Exporting Countries helps boost inventories, which are at a two-and-a-half year high in the U.S.

Twenty of 43 analysts and strategists polled by Bloomberg, or 47 percent, predicted oil prices will fall next week. Twelve, or 28 percent, said they will rise and 11 forecast little change. It was the most bearish survey result since Jan. 28. Nineteen of the last 26 surveys correctly predicted the market's direction.

``Crude oil prices should continue to decline as a result of ever-rising inventories,'' said John Kilduff, senior vice president of energy risk management with Fimat USA in New York. He also said the possibility that interest rates will rise more quickly than expected and damp economic growth is ``diminishing interest by speculative players in the market.''

U.S. crude-oil stockpiles gained 4.1 million barrels to 309.3 million a week ago, according to an Energy Department report on March 23 that triggered the biggest one-day decline in oil prices this year. It was the sixth straight weekly increase, leaving supplies at the highest since July 2002.

http://quote.bloomberg.com/apps/news?pid=10000080&sid=awB89z9yd4pM

Bloomberg's survey of oil analysts and traders, conducted
each Thursday, asks for an assessment of whether crude oil
futures are likely to rise, fall or remain neutral in the coming
week. The results were:

RISE FALL NEUTRAL
12 20 11

that's what this story is about. But deeper into the article (as you clipped) 23 analysts predict oil prices to hold steady or rise, which makes them a slight majority over the 20 saying prices will decline.

spin spin spin spin spin

thanks :hi:

edit: added ( ) for clarity

1. Long term - technology and "Peak Oil" and Global politics. (My opinion - pushing prices up)

2. Mid Term - "War Risk Premium" (My opinion will push prices up as long as GOP and NeoCons are in power; I have also posted on the IP forum that the "War Risk Premium" inures to the benefits of the terrorists).

3. Short Range - spot market, current daily and weekly oil inventory in the US (My opinion, the math is straight forward if you have the "data".

4. Nano-range - things like the BP Refinery fire in Houston, speeches by politicians, daily war news from Iraq, threats and law suits by State AG's like Spitzer and Lockyear.

extra supply at the end of Winter (wouldn't want to get caught short), and reduced consumption due to high Gas prices. Per barrel should drop slightly as demand for crude takes a little dip, but it will all bounce right back once the slack is taken out of the supply chain.

Long term? Don't mean a thing.