cyerman

Canadian Superior Energy: On the Brink of Hitting the Jackpot?

With the prospects of huge dillution within sight taking the existing investors down the path to making their stock much less valuable plus the tanking of both stocks, would appreciate optiondragon's updating his perspective. What is going on and what are your ideas about the stock now. Have you bought puts, sold calls, still long or what.

Crude Oil, Gold Prices Plummet: Time to Get Cautious About Dollar Bears

Some of gigem77's long term optimism, if I am reading it right, on calling this a short term drop in oil prices is based on what seems to be an assumption of growing demand for oil in the face of flat production.

Given my simple minded view of economics, just suppose the current level of oil demand is X and that level is associated with a certain commensurate aggregate level of world economic prosperity. If that level of world prosperity drops, just suppose again that pacemakerj is correct on that point, then isn't it logical that the oil demand commensurate with that drop is going to be W not X. Some bright soul could graph the levels of gross world product and gross world utilization of oil and see what the two might tell us when compared over time. That comparison may not predict short term problems with the price of oil recovering as implied by gigem77 but instead it could identify a longer term bearish trend bearing (sorry) some parallel but finite correlation with gross world product could it not?

Even given all the short term factors mentioned by gigem77, isn't the likelihood of a return to a mean price (even granting that lower prices could increase utilization which is not a given anymore) over coming years (not months where everything from the Russian invasion to the (possible) strike on Iran could act as another powerful short term price spiker) driven by a fall in the sum total of the demand generated by sinking gross world economies the better of the two possibilities?

Maybe the perspectives that made certain far sighted people rich in the past - back when oil was much cheaper- in other words the paradigm that the production of oil will simply not be up to the demand side of the equation and amplified by the oil speculators suddenly find itself reversed for a period of time longer than anybody would predict and again be amplified by the oil speculators?