gabe borenstein

Getting More Constructive on Crude Oil

Basically ,every decade or so ,one expert or the other mentions the natural contraints on the oil output.If we were to accept some of the past thinking on the oil topic ,by now oil wells should should be try.
One thing for sure the global growth could not possibly explain the 400% increase of the oil price from its long term average.
Clearly ,unprecedented global speculation in the crude ,was responsible for the spike.
Severe contraction in the period ahead in Europe and the Emerging Market Zones,may further undermine the demand for the energy .
Then again ,wind power ,solar power and the new promising alternative to oil,Canadian oil sands might make a dent in the crude prices .
One thing for sure in this cycle speculation not the global growth ,had contributed to the unprecedented price spike in the crude.