Oil rose Tuesday as OPEC and the Energy Information Administration held onto their views that the global appetite for oil will grow to record levels this year despite a shaky global economic recovery.1.38 million vs 1.36 million --- a rounding error. I doubt anyone can forecast oil consumption that closely.
Benchmark West Texas Intermediate crude for August delivery rose $1.37 to $96.52 per barrel in afternoon trading. Brent crude fell 18 cents to $117.06 per barrel on the ICE Futures exchange in London.
While OPEC thinks global demand will continue to increase this year to the highest levels ever, the monthly report it released Tuesday said that demand won't grow as much as it previously expected.
The cartel said daily world consumption will increase this year by 1.36 million barrels -- down from an earlier estimate of 1.38 million barrels -- to an average 88.18 million barrels.
Today's rebound in the price of oil comes even after the report that the dollar hit a four-month high agains the Euro. Generally speaking, all things being equal, at the end of the day, the bottom line, if the dollar strengthens, the price of oil falls. Remember, the average price paid for a bbl of US-Strategic-Petroleum crude oil sold for $107/bbl. Just saying. Most of the oil went into off-shore "vessels."
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