Cooling of China's Inflation Gives Room for Further Easing

The US government has turned more bullish on the world oil demand. As shown in the DOE/EIA's monthly Short-Term Energy Report, oil demand is forecast to increase +0.86% y/y to 88.83M bpd in 2012, followed by a +0.98% y/y rise to 89.7M bpd in 2013. Both estimates were higher those projected a month ago. At the same time, the DOE/EIA reduced the estimates of non-OPEC supply to 52.54m bpd and 53.80M bpd in 2012 and 2013 respectively, suggesting the call for OPEC's output should increase to meet growing demand. Concerning the price outlook, the DOE/EIA cut its WTI price forecast to $93/bbl in 2012 and $89/bbl in 2013, down $4 and $9 respectively from previous projections.

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Cooling of China's Inflation Gives Room for Further Easing