As I suspected all that talk of an "oil superboom" or whatever Morgan Stanley predicted back in June has just been thrown right out the window.
"The extent of the retreat in demand has caught many people by surprise," said John Kingston, director of oil at Platts, the energy information arm of McGraw-Hill Cos. "Demand destruction is due to higher [gas] prices, which have caused U.S. drivers to change habits."
I think the slowing world economy and the Chinese going back to normal consumption after the Olympics has put supply and demand back into equilibrium again. Also the stronger dollar and hedge fund selling were all part of this drop as well. It is interesting to note if we will see big trucks and SUV sales start to creep up now that gas is affordable again?
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