Gigem77

Forget $100 a Barrel - Oil Will Plummet to $30

Thanks for another good laugh.

July gasoline data show week over week increases in demand as the price fell. Demand has been suppressed and is returning with marginally lower prices.

New technology is exciting, but irrelevant to oil demand until that new tech is deployed commercially.

The next president will face a number of daunting challenges. One of those will be grasping the math of oil demand and production. You also face that challenge.

Oil is not plentiful, thus the exploration in difficult and expensive places like offshore Brazil, the deepwater Gulf and offshore Africa. These new finds will take years to bring into production and those will be the most expensive barrels ever produced. The rigs that PBR is mobilizing lease for 700k per day.

Buy RIG and NOV. They are minting money and will continue to do so for years.

Options Trader: Friday Outlook

So copper and oil need to fall, the dollar needs to recover over 75 and housing needs to bottom. Well, that reminds me of an old joke about a couple of cowboys crossing West Texas. One says, "all this country needs is some water and a few good men". The other responds, "that's all hell needs".

Chinese oil imports just hit 8 million barrels per day. That year over year growth more than compensated for the drop in U.S. consumption. tinyurl.com/5wlpof

Growth in population and in the middle classes of China and India will keep upward pressure on commodity prices.

Bernanke cannot adopt the policies of Volcker without killing the banking system that he is trying to save. Ergo, the dollar is toast.

The fact that a failed former fed chairman can still move the stock market is an indication of how speculative and fragile it has become.

We pulled out of the recession of the 80's with massive new innovations in computers and communications. What's the basis for optimism this time? That's where I want to invest.