sickofthehype

5 Reasons Why Oil May Rise

I noticed you had 1750 comments based on your ID. Were those all cut and paste versions of today's post, placed 1750 times?
Wow. Someone's bored..


On Jun 24 07:52 AM Mad Hedge Fund Trader wrote:

> There are more. I chatted with Jeff Rubin t, former chief economist
> with CIBC World Markets, who reaffirmed my own hyper-bull case for
> crude in bucketfuls. He was in San Francisco, admiring our civic
> planning and mass transit system, as part of a tour to promote his
> new book “Why Your World is About to Get a Whole Lot Smaller: Oil
> and the End of Globalization.” We are in the bottom of the ninth
> inning of the hydrocarbon age. The next super spike will take us
> to over $100/barrel within 12 months of the beginning of an economic
> recovery, and much higher after that. The problem is that we are
> losing 4 million barrels/day through depletion just when demand is
> increasing. The only offset will be dirty, foul, huge carbon footprint,
> $100/barrel Canadian tar sands, which will double, to account for
> 40% of our imports. The biggest increase in consumption is in OPEC
> itself, where consumption has ballooned to 13 million barrel/day
> and oil is being wasted on a prodigious scale, compared to only 7
> million b/d in China. Gas there costs only 25 cents/gal, utilities
> in Saudi Arabia pay only three cents/gallon for bunker fuel, and
> Dubai is blowing 3,000 b/d equivalent running an indoor ski resort.
> Oil over $100/barrel will bring globalization to a screeching halt.
> Economies will go local because it will cost too much to transport
> goods, as we have in the past. No more California avocados in Toronto.
> More importantly, no more Chinese steel in the US, or any other heavy
> exports, which will lead to a resurgence in domestic manufacturing
> and the jobs that come with it. Last year $90 of the $600 cost of
> Chinese steel went to shipping costs. $10/gal gasoline will take
> 50 million of our 240 million cars off the road. Even if we replace
> them with electric cars, we don’t have the power grid to juice them.
> Chinese exports will collapse, but so will their Treasury purchases,
> meaning no more bailouts for us. Oops. Subprime neighborhoods will
> get plowed back into farmland so we can eat. I think Jeff is dead
> on about oil prices. But as necessity is the mother of invention,
> some of his predictions about their impact on international trade
> are a bit extreme for me.

Oil Price on the Rise: What Gives?

Are you sure about Russia?
oilandenergymarket.blo...



On Jun 23 02:32 PM Alpha Dinar wrote:

> Who are you to say wrong wrong wrong right right right? My exam grader?
> This is a blog. You are supposed to intellectually challenge me instead
> of vaguely saying right and wrong! Why don't you share with us significant
> points in your articles instead of having me read all your holy articles?
>
> Btw, OPEC controls 40% of oil supply and not 100% and they are a
> cheating cartel. If they cut output, Brazil and Russia will be more
> than willing to make up for it!

Explaining Higher Crude

Well, our dollar is the center of the universe, at least for the time being. Dollar up oil down, dollar down oil up, it's not a self righteous philosophy going on. Throw in increased demand from China, India, and the likes, plus much further devaluation of the dollar - and voila, that's all you need, center of the galaxy or not.


On Jun 05 03:51 PM Freya wrote:

> Typical "We are the Center of the Universe" Sentiment. We Aren't.
> We haven't been for the Last Decade.
>
> The "Last Innovative Hurrah" ended with the Internet Bubble. The
> Recession ended because of demand from overseas, specfically Asia
> the last time around. It was the pressure of low priced goods coming
> out of Asia that led Greenspan to believe in Deflationary forces,
> ergo low interest rates longer than required.
>
> This led to the Housing Bubble and the very innovative Financial
> accomodations which first fed the that Bubble and then went on to
> feed the acceleration in commodities and the Financials themselves.
>
>
> This Bull Market is being fed by Asia again (ex-Japan). China, India,
> even Australia have avoided recessions. Their economies contracted,
> slowed but thats has been it.
>
> Now they are stimulating. They are doing it Now. About Half of the
> Worlds population is experiencing what We would consider extremely
> high Growth.
>
> If you think that the US of A's continued contraction will Continue
> to Lead the World with its woes, think again. The "Industrial Powerhouse"
> which was Japan fell off a Cliff and hasn't recovered.
>
> Commodities went up despite them, so will it be for us. The Government
> Now controls our future. Oil goes up, they will Tax it. CO2, lets
> Tax it.
>
> Social Security was never designed to be Taxed, it is. Retirees who
> thought they were investing in the "Safest of the Best" have just
> been sent down the Tubes with the GM Bankruptcy.
>
> We may be going down the tube, but Asia is doing a good job rebounding
> without us.
>
> They will use whatever we do not and then some.

Oil Won't Stay Down for Long

How about the common sense model.

Let's see, $8 TRILLION being created by the Central Bank, with more to come, guaranteed.

Dollar devaluation? Uh, yeah. Big time. Oil is priced in dollars.

Price will skyrocket when the dollar is devalued into oblivion, which is about to unfold. Welcome to the Weimar Republic.

There's your prediction.

The Oil Short Squeeze Is On

"That's like Merrill predicting $25 oil. If they had forecasted the oil decline, maybe they wouldn't have needed to sell themselves to Bank of America"

My sentiments precisely.

Reality Hits Oil Market, Dollar Could Benefit

Oil is priced in dollars, and since July our dollar has gained a ton of strength. Strong dollar, low oil. Look at the index from July to present.

But now we must factor in a 38% increase in money supply in only a few months, plus all of the stimulus packages in place and READY to be placed (just watch), as well as watch this continuing game of who-can-debase-their-c... game being played by the G20.

I wouldn't base my investment theories alone on Mexico's decision to hedge. That's muy loco. This inflationary campaign is about to hit LIKE NO OTHER, so be ready for it. Oil will shoot up in a very, very short period of time, just like it came down in a short amount of time.

Why Oil and Gold Are Headed Much Higher

Oh, I re-read my comment and it sounds as if I am stating Democrats bring about inflation. Not so, it's just a coincidental thing. I'm not a Republican and I'm not a Democrat, so I could care less about the parties involved, it's just how it is.

All the mattress money out there will start hitting the system at some point. Look out.

Why Oil and Gold Are Headed Much Higher

Armagedon - IF banks start lending again? Banks must lend to survive, so IF they don't lend, they're toast. The question is not IF they lend again, it's WHEN they will lend again. LIBOR coming down huge, money infused in the system will start flowing, and lending will most definitely crank up again at some point in the near future. We're in a short term deflationary environment, but you can bet inflation is on the horizon in a big, big way.

Look back to Carter being elected in 1976. A democrat promoting 'change'. 7% 30-yr fixed mortgages when he was elected that were near 18% within just a few years. We inflated the living crud out of our economy, and despite HUGE interest rates, most real estate doubled in 4 years. Then again, so did everything else that was a commodity. I think we're on the verge of another similar era where we'll see another Democrat elected with the promise of 'change', and within the next two years inflation will be UNBELIEVABLE. I'm not promoting gold, but you can bet that it, along with oil and real estate and any other hard assets, will skyrocket.

Why Oil and Gold Are Headed Much Higher

SW Richmond - Good points, however, the 'destruction' is far far less than the new money being created, not to mention our debt increase. The increase in money supply is outrageous, and much of the 'destruction' are paper losses anyhow. Short term deflation is likely, but looking forward inflation will be in full force. You betcha.

Why Oil and Gold Are Headed Much Higher

$7 trillion in money from thin air across the globe in recent times - and this inflation producing fact will push up oil WELL before 2011.

Remember this summer - everyone was predicting $200 oil. Now you hear predictions for $30 or $50 oil. Who can you believe? Not anyone calling themselves an 'analyst'.

Oil will be back up before you know it, so now's the time to get in on some cheap oil stocks. I personally jumped all over Suncor at $19 the other day. FIRE SALE!!!!! 3 year hold on that should work out pretty good...

Analyst: Oil Prices Inflated by 50%

Everyone loves to say "I told you so" when things turn in their favor, especially during volatile weeks on the market.

How Big a Contribution Comes from Oil Speculation?

Under oath the Execs in the industry even state oil should be $50/barrel. And with so much of the price of oil determined by such honest and trustworthy 'investors', what do you expect..

Oil Bubble Breaking? Barron's Outlines the Case, But the Argument is Weak

Datalink said something profound: The 'Big' 3 auto makers here have not spent much of their profits in developing more fuel efficient vehicles. They've made money in the past, and what vehicles are here to show for it? Crap cars and trucks with terrible fuel mileage.

I was in Europe recently and drove a diesel 5-series BMW. 43 mpg on the highway, in a sports car with incredible power. Why is this car not in the US?

The technology for more mileage is out there, it's just that the idiots building cars haven't taken full advantage of it. We're a country controlled by oil, and the only way to solve the problem is to start using less and less of it.