Duude

Don't Believe Long-Term Oil Forecasts

What everyone need know is that China and the rest of the emerging nations can't go it alone for long. Sure, China has vital reserves and their timeliness in reverting from being solely an export driven economy into to the world's best infrastructure play is the key to their continued expansion but this has a finite life. Internal domestic demand has limitations. Single child families need to provide for their elderly parents livelihood, and the per capita income wasn't so high to sustain that without dynamic export growth. This is where the tire hits the road. China needs the American consumer, and 10% unemployment and an eroding dollar isn't a prescription for what will ail China. Ultimately, this all feeds into world oil demand. China is far more intelligent than American politicians seeking to ramp up demand of oil for the purposes of storage when prices are low. We will revisit sub-$50 oil sometime in the next couple of years.