Interesting that as the price of oil has fallen so has the activity in this thread.
Now that we're below 90.00, which is the base cost at which many producing countries established their budgets, the associated drilling/R&D budgets will also fall. In the consuming countries the increased tax revenue from high fuel prices is also taking a hit. North American consumption for first half 08 dropped by somewhere in the realm of 925K bbls to 1.2 million bbls per day as compared to first half 07.
Now that the banking mess is muddying things up it doesn't look like the lower oil prices will result in a short term increase in consumption. The Vienna OPEC meeting in November will be quite the little stress show.
Yes, I'm going to take a hit on some of the diesel forwards in the next 2 weeks.
