With high global demand coming into the winter months, there’s still concern about heating-oil supplies,” said Kevin Blemkin, a broker at Man Financial in London. “This has been an exceptional year and we have to be realistic that demand growth is probably going to slow next year, when may see $40-a-barrel oil.”
The sad thing is that people pay this guy for his opinion. No, that won’t happen because in spring we’ll be anticipating summer driving season. There is not going to be a demand side solution to oil prices barring the growing possibility of their sending the world economy into freefall. This is a problem in search of a supply solution (doubly so if you consider alternate fuels as part of fuel supply) and a big step in that direction will be regulatory. Now, I expect Mr. Blemkin is going to luck out and look like a sage when prices do drop in the spring, but it’s successful Iraqi elections in January that will make the difference.