Sober Realist

Your Oil Stocks Aren't Coming Back

All the fundamentals stated by the oilers here are true. Oil is the most intensely concentrated source of energy ever discovered by man. However, I believe we have further to slide in price due to the disintegrating world economy.

Adam Robinson, head of commodities at Armored
Wolf, a Southern California-based hedge fund, said the United States
has 54.2 days of oil consumption in commercial inventories and if
Energy Department forecasts are correct there will be 56.8 days of
inventories by August. He notes that would be only two days less than
the level reached in August 1998, when oil prices plunged to $12 a
barrel.
"As long as supply isn't falling as fast as demand, prices will keep
falling," Robinson said.

I'm concerned also about the destabalizing effects that the global economic meltdown will have in the ME and everywhere else. The current director of the CIA shares my thoughts:

www.sfgate.com/cgi-bin...

So I share this author's thoughts that, barring a major war, prices will be depressed for some time but NOT for the reasons he gives. By the way, assuming there will be no major war in the ME within the next 2 years is a BIG assumption. Just look at the weakening state of Pakistan, Iran's dogged nuclear pursuit and Israel's recent war of words.

New Technology Makes Natural Gas a Viable Replacement for Oil

So if we start using nat gas for transport, what's that going to do to my heating bill? Not a good thing.