Oil was rallying on the threat of Hurricane Ida hitting oil production, but as it has weakened to a tropical storm, prices have retreated. It should also be noted that the US Dollar has weakened, highlighted by the greenback US Dollar Index falling to 15 month lows against a basket of currencies.
- Goldman Sachs analysts said this morning that they forecast oil supplies would tighten in the coming months as the global economy rebounds. They have predicted that the glut of inventories would actually become a deficit in the future
- Goldmans have reiterated their year-end WTI target as $85, and $95 by the end of 2010
- Iraqi Oil Minister Hussain al-Shahristani said yesterday that he expects three of its major oilfields to pump over 6mn barrels of oil a day
- Venezuelan Energy Minister stated today that capacity should rise to 4.25mn barrels per day, up from the current 3mn
- Look out for Euro zone GDP and US trade balance on Friday.