And "with the energy demand showing no signs of abating, there seems to be a growing concern that OPEC's decision to keep output unchanged might result in a supply shortfall, which could leave refineries unable to boost runs enough to replenish gasoline supplies, setting the stage for a sharp upward price spiral," he said in an e-mailed note to clients.
Francisco Blanch, an analyst at Merrill Lynch, said in a research note Tuesday that oil demand is "expanding strongly relative to last year in sectors such as transportation, petrochemicals and power generation." And in emerging markets, oil demand is "looking very strong with China, India and other countries taking in substantially more fuel for transport and petchem use than last year," he said.
In other words, don't be surprised to see oil prices rebound in the next few months.
Econ 101: increasing demand = increasing price.
