Pink Panther

Why Is Oil Trading at $53 When Supply and Demand Is So Bearish?

Yes, even "poor" countries can afford $150 or even $250 oil:
People there are used to crowded trains and buses and will drive to work in Nanos using carpools of 4 people or more, achieving like 50-80 miles on a dollar per person. They will use the expensive resources much more efficiently than people in the developed countries.

On Mar 24 05:26 PM ValueInvestor wrote:

> Do you really think a country like India, where people need the cheapest
> car in the world just to afford one will be able to afford $145 oil.
> I don't think so. They'll all have Nano's in the driveway and still
> be walking to work.
>
> The simple fact is the world couldn't afford $147 oil last year so
> how on earth are we supposed to afford it next year and beyond?
> We can't, so the supply and demand lines will move accordingly.
> Remember, the solution to high prices is high prices.

Why Are Investors Returning to the Dollar?

Joseph, great article (fun to read too), you hit the nail right on the head.
What about buying OIL instead of gold??
After all, every "bottom" in oil price used to be significantly higher than the previous one.