Phil Flynn: One Bad Auction Don’t Spoil the Whole Bunch Girl

Yet at the same time one good auction does not solve all of Europe’s problems either. The Portugal bond auction may have eased concerns regarding a total global market meltdown but them Beige Book and dismal demand numbers from the MasterCard Spending Pulse report as well as a downward revision to the demand outlook from the Energy Information Agency has oil traders questioning about the strength of future demand growth the total oil demand growth outlook.

The first sign that things might not be so great was a report from The Energy Information Agency’s much anticipated Short Term Energy Outlook. The EIA revised lower their outlook for demand because of what they see as a slowing economy. The EIA lowered their forecasted GDP growth number from growth projections of 3.1 and 2.7 percent for 2010 and 2011, respectively down to growth of 2.8 percent in 2010 and 2.3 percent in 2011.

That decrease in economic optimism caused them to lower their crude price projection to the current average of.....Read the entire article.

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