A Peak in conventional crude oil production in 2006 as stated by the 2010 World energy outlook, should logically coincide in a short space of time with a peak in net oil exports, as the producing countries have less oil to export and keep the oil they need for themselves. If these peaks did happen, they should show up in a corresponding decline in the oil available for other countries, especially the worlds biggest oil consumer, the U.S.
Well, total net imports were 7.793 million barrels per day in the last report. That is an import level below any week since the week ending February 27th 1998.
“The crude numbers are shocking,” said Andre Julian, chief financial officer and senior market strategist at OpVest Wealth Management in Irvine, California. “A near-term shortage of crude in the U.S. is forming. Prices could easily hit $100 by the end of the year based on this report.”