Oil recovery faces new downstream threat - FT.com
I have been forecasting lower oil prices, and I continue to do so. With the strengthening of the dollar, the price should be somewhere between $30 and $35 bbl. We have a glut in oil, and in gasoline. Worse yet for the oil bulls, we are in mid summer, and gas/oil prices should be strengthening. They are not. Expect the price to suffer once the driving season ends. The world economy is not going to move powerfully towards using more oil. China has been buying up lots of oil, but it is using far less, and that can only mean storage issues.
The long term price of oil should be lower. And with US tight oil becoming ever less costly to produce, it will be difficult to force the price upwards.