Sigi

Conflicting Oil Price Drivers Confuse Investors

hmm... interesting article and a good read indeed.

In the "Demand Side" section you indicate that because the economy is contracting, does not mean people will travel less, but on contrary... This is a fair point, but not a convincing one... lets not forget that a large part of gasoline consumption is from the industry side, if business slows down so will transport of goods and with it go oil prices, + oil is heavily used in all kinds of industries, including electronics, plastics, etc... The real question is by how much has oil
been overpriced and to what price-level will it end up beeing attracted to.

On another note, I quite agree with your comment on the non G8 economies beeing in-tact. Only 5-10 years ago not much would happen without involvement of G8 economies but now the global
landscape has certainly changed a lot and things work without the
classical big guys!

One thing is clear, oil makes for a great discussion any time of the day. what do you guys think...