Oil Could Face “Peak” DemandBy DAN STRUMPF
The theory, popularized in the past decade, said global crude-oil production would eventually reach its zenith and oil prices would have only one way to go: up.So much for that idea. Oil production continues to climb, and the latest theory is that oil demand could peak first. The idea is prompting some analysts to rethink assumptions about the market and to call for a period of long-term stability or decline in crude prices.Last month, the commodities team at Citigroup, headed by veteran oil analyst Ed Morse, issued a report saying “the end is nigh” for global growth in oil demand. They said demand could peak as soon as the end of this decade as a result of improving vehicle efficiency and widespread displacement of oil with cheap and abundant natural gas.
via Demand for Oil Could Peak Well Before Production Does – Barrons.com.