Crude Dips On Ideas Rally Overdone

Crude oil is lower this morning, down half a dollar to $72.08, having briefly popped up above the $73/barrel mark yesterday after the International Energy Agency (IEA) upped its forecast for global consumption for the first time in almost a year.

The IEA said that world demand for crude would be 83.3m barrels/day due to increased demand from China and the US.

The market is taking a bit of a breather from 8-month highs today on ideas that the recent rally might have a lot more to do with speculative money than demand.