Analysts Say Oil Price Drop Is Long Way Off

Declining Asian demand could bring relief ... by early '09
By Jim O'Neill,  Newser User
Posted Jun 9, 2008 10:25 AM CDT
A pumping unit sucks crude oil from the ground near Manhattan, Kan. Oil prices shot up more than $10 to a new record above $139 Friday, June 6.    (AP Photo/Charlie Riedel, file)
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(Newser) – A reining-in of Asia’s demand for oil could help the global crude supply rebound, eventually dropping prices sharply, analysts tell Reuters. But the price relief likely won’t show up until the end of this year or early next, as data needed to help traders set prices is slow to flow in from major Asian countries.

"Until Q4, there certainly appears to be additional spike risk in an impatient market," Lehman Brothers analysts said. "But when the data becomes available, the price action could be as sharp on the way down as on the way up."