Zeb

Oil at New Highs: Heading to the Exit Lane

Hey Fred,
Best regards and interesting article! Indeed the exit lane concept weighs heavily on me as well. For now, I am hanging on to my USO and also physical gold. I know, one of "those" people. Nothing in the linked article about commercial air disruptions, but there will be a blood bath there too...

In Which Direction is the Price of Oil Headed?

I think that the price of oil will rise relentlessly due to supply constraints. Most of the giant oil fields are in depletion worldwide. To maintain production at the present level of approximately 85 million barrels per day, 5 million barrels per day of new oil has to come on line every year. This is with CERA's optimistic depletion rates. Investing in oil is as close to a sure thing as exists. I don't expect that the game will ever change, because modern affluent people love to use this form of energy. Demand destruction will start with the poor and relentlessly work up the food chain to the rich (or the newly poor). In the end, only the politicians and military will be able to afford to drive and jet around....