Amid yesterday’s selling of equities and fresh worries over subprime mortgages, you might have missed the latest from the International Energy Agency. Stockpiles of crude in developed countries is poised to drop to the lowest levels in 10 years, the group warned. The solution, as if you didn’t already know, is that OPEC will need to come to the rescue by pumping more oil.
“Preliminary data suggest that OECD stocks have fallen by over 1.26 million [barrels per day] over the first two months of the year, and could be heading for the largest first quarter stock draw for over 10 years,” the IEA report advised, via Reuters. “In reality, stock trends and prices are signaling that higher OPEC exports will be needed in the months ahead.”