T1B

It's this "becoming more efficient" idea that the Deutsche Bank analysts use to predict even lower oil prices in 2010 than now - an average of $65 a barrel next year compared to nearly $80 currently.

To get there, they employ a metric known as energy intensity, which basically measures the amount of oil used in relation to the size of the economy. (Keep an eye on this term in the next couple of weeks - countries at the upcoming Copenhagen summit on climate change will use it to try to wiggle out of making any hard commitments on cutting greenhouse gases.)


http://finance.yahoo.com/news/Oil-suppl ... et=&ccode=

Funny how $65 is now considered cheap.

http://finance.yahoo.com/news/Oil-price ... 6.html?x=0
Oil prices fall on poor demand
Oil prices fall as America's petroleum consumption slumps and dollar rises

By Chris Kahn, AP Energy Writer
On 12:42 pm EST, Wednesday December 9, 2009

NEW YORK (AP) -- Oil prices dropped to its lowest level in two months as the dollar rose and government data showed that energy demand continues to slump.

Benchmark crude for January delivery dropped $1.75 to $70.87 a barrel on the New York Mercantile Exchange. Prices dropped as low as $70.53 a barrel earlier in the day.

The Energy Information Administration said gasoline supplies increased while the nation's consumption of petroleum products fell to its lowest level since the week of July 10.

"Demand is just so soft," said Andrew Lebow, senior vice president and broker at MF Global. "We're expecting consumption to return with the rebound, but so far we're not seeing it."

The EIA report also said U.S. crude supplies dropped last week, though analysts said that typically happens toward the end of the year as refineries cut down on their inventories.

The dollar also pulled crude prices lower. Crude is priced in U.S. currency, and a rise in the greenback makes it tougher for investors holding foreign currencies to buy energy commodities....

$90, maybe going to $105 from what I read with $4/gallon gas in spring 2011. That should kill summer driveing season.

God I love not owning a car.