With another US bank having succumbed to the financial turmoil (my own Wachovia) and other banks in Europe taking emergency measures, the oil and gas markets decided that demand was falling faster than inventories. The price fell more than 10% back into the double digits and Deutsche Bank lowered its oil price forecast 23% for 2009, to $92.50 per barrel. Economic recession in Europe and Japan along with a likely recession in the US brings with it the potential for global oil demand to be close to flat next year. Even with slow production growth, such stagnation in demand could allow oil inventories to rebuild to (more…)