Front Core Capital Sees Gain in Oil Futures

The Organization of the Petroleum Exporting Countries has revised its demand forecast resulting in higher projections than originally expected. End Quote

(1888PressRelease) November 15, 2011 - Front Core Capital is expecting oil demand to increase higher than originally projected one year ago. Crude oil futures have risen for the 5th session in a row with an overall gain of five percent.

The Organization of the Petroleum Exporting Countries has revised its demand forecast resulting in higher projections than originally expected. This increase is also due to the European debt issue, much higher demand forecast from major oil producers, the attention regarding Iran's nuclear plans with a fear of an attack on facilities from Israel, and increased tensions in the Middle East

Front Core Capital reports that there has been a huge oil discovery in Argentina by Repsol, a company based out of Spain. Repsol reports findings of 927 million barrels of recoverable oil and natural gas, and 741 million of those barrels are shale oil in the producing region. The area covers thirty thousand square kilometers so the total recoverable resources may end up being higher than expected.

The Energy Information Administration has been analyzing the oil market and continues to forecast strong growth in global crude fuels, natural gas, and liquid-fuels consumption for this the remainder of 2011 as well as 2012. In their report it said that world consumption will increase from its record high level of 87.1 million barrels per day in 2010 to 88.2 million barrels per day in 2011, and could reach 89.6 million barrels per day in 2012.

Front Core Capital analysts are forecasting an strong growth with over 1 million barrels in crude oil inventories, an increase of 1.5 million in gasoline stocks by the middle of this month even though oil products finished mixed this week on Nymex. Gasoline and heating oil dropped slightly as natural gas start gaining momentum.

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