Schork's bearish outlook for oil

With crude oil hovering at about $45 a barrel, energy analyst Stephen Schork, of the Schork Group, talks with Bloomberg about the outlook for crude oil supply and demand.

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Some highlights:

Clearly, demand is not going to pick up in the immediate future. Now, following all the bankers and fund managers that I have as clients that I speak to in the United States, they paint a bleak picture. I'm over here in Vienna all week speaking to my clients, first and foremost OPEC, but also a lot of the central European bankers, and what I'm hearing here is even more dire than what I'm hearing in the United States.

What we do know now is that confidence is extremely low due to the tremendous amount of uncertainty. No one knows what to do, cash is sitting on the sidelines, we are not growing. Therefore demand in this recession will deteriorate from here.

With the way things are going right now, this may be the month that Steve Forbes is eventually proved correct in his call for $35 oil in late-2005 after the Gulf Coast hurricanes.

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