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Roger Wiegand: Oil to Reach New Highs by Year-End

I'll give you some data points...US demand for petroleum products down to levels not seen since 1999...Chinese stock market off 60% indicating a worldwide slowdown (no such thing as decoupling). And the marginal barrel to produce costs like $70 according to Saudi Arabia's oil minister.

And you can't use that "what's changed since it was 150/bbl" line either, because 1) a lots changed as the wall street crunch has damaged the real economy and 2) nothing changed between 2007 and 2008 when oil more than doubled!

Roger Wiegand: Oil to Reach New Highs by Year-End

By the way, DOE just reported that US use of petroleum products dropped to 1999 levels over the past 4-week period. I realize that facts can be inconvenient sometimes, but there's really no way to ignore demand destruction at these levels. Lots of price predictions in the above interview, but a conspicuous lack of supply/demand figures other than the T. Boone pickens slogan of 85 mbd production with 87 mbd demand. NEWS FLASH econ101 says that price adjusts to equilibriate supply and demand. If demand was really outpacing supply by 2 mbd we would be drawing down inventories at record pace.

Roger Wiegand: Oil to Reach New Highs by Year-End

Is this man serious...no really...is he serious??? He even admits that the US might endure a severe recession/depression that drags down emerging markets in Asia, but then says oil demand will continue to rise regardless of economic growth...It's people just like this who blindly hold to a idea (like the notion that housing could never fall) and allow themselves to lever 30:1 and collapse the banking system. I can't believe this person actually sucks up oxygen that the rest of us in America need. THIS MAN NEEDS TO GO!

Riddle me this BATMAN? If all of these hedge funds are going under and are being forced to sell their oil positions...then who pray tell will be going long crude oil when the dust settles? I-banks...whoops none of them left; pension funds...i think they've learned their lesson...who...i repeat...who will be in a position to build long positions in an environment of global deleveraging and asset deflation.

Sure the US and RoW are printing money like mad to try to re-inflate the sytem, but as we exist in a fractional-reserve banking system this really isn't creating inflation because the banks aren't lending.

Once again, this man is sick...I could see how you could argue for 100/bbl by year's end, BUT 157/bbl...It's almost like some analysts get paid based on the degree of ridiculousness in their reports. I challenge this man to put his entire net worth in January 140 call options on WTI crude oil. If he's right he makes out like a bandit and if he's wrong (but wait he shouldn't because the system can collapse and oil demand will never go down!) then he loses everything and we can stop wasting our time clicking on links to his interviews.