Glancing at Longer-Term Oil

Oil is bumping up against multi-month resistance (bottom chart; USO), as the Oil VIX ($OVX) has been closing in on multi-month lows. It wasn't so long ago that gold was in a similar situation. With continued U.S. dollar weakness, these are levels I'll be watching.

Comments

[Vuke:]

Nice charts. With China selling 1 million new cars a month and who knows how many in Africa, Indonesia, India, eastern Europe, Russia etc. demand can only grow. Add the containers of generators, outboard motors, tractors and roto-tillers flooding world markets for a script for a much higher demand scenario.

Large existing fields are in decline and new discoveries are small in comparison. Oil will continue to rise in price in real terms until sufficient alternate energy sources emerge. The future of low cost energy is likely nuclear.

Oct 15 02:16 AM