We've given them enough of a scare the last few days, a preview of things to come when demand is not strong,
The market is therefore focused on two things: No additional supplies coming from OPEC. The other factor is that we should be entering what is a high demand period for oil products with the start of the summer season,
Also, the president is making speeches trying to talk oil prices down and say the situation is better, but talk won't change the underlying fundamentals. Demand is still strong, supply is still tight. So even if perception changes for a bit, the situation is no different.
We are entering the lowest demand period of the year sitting on huge levels of inventories.
There's hope that an increase in demand will bring down what is perceived to be current high level of inventory, ... But that has not happened. We haven't seen significant declines in inventory levels around the world. That has influenced OPEC's decision.
Demand continues to be relatively strong. Supply remains tight. And the global economy seems to be doing OK. As they say, no harm, no foul.
The demand for gasoline is very strong. And obviously now people are thinking ahead. And if we have a cold winter, we'll see a run up in home heating oil to above $2 per gallon,
Any cooling in economic growth immediately will take oil demand down so one would expect the price will come down.
The warm weather in the U.S. may be cutting demand for oil by 1 million barrels per day.