Oil Collapse Soon On Dollar Stabilization And Demand Destruction?

As the largest consumer of crude oil, and especially, refined gasoline (not as much for crude or distillates, but still the largest), drops in U.S. consumption will have a proportionately large impact on global pricing.

Has demand risen from emerging economies? Absolutely. It's been centered mostly on industrial users, rather than individual consumers, however.

The last time I checked, which was about a month ago, there were 20 cars per 1,000 Chinese. Contrast that with the U.S.
 
I just got back from India. All I can say is 'wow'. They currently ration gasoline over there, pay close to 8$ USD gallon AND that's with government subsidies! Lines at the pump remniscient of the US in the 70s.

The laugher is that people think that if the price goes up, demand will weaken. This is why the manipulation of oil prices will be called "supply and demand" issues. Its because India is buying at ANY price! Because they are neophytes in the trading/speculating world relatively speaking. they freak out and buy more as prices go up, fearful that the prices will go even higher. I imagine the situation is the same in China as well. Because all of their other expenses are so low, they can afford to pay these prices. I don't think I'd be shorting oil just yet. IMO, the only reason to short oil will be if the Fed starts raising interest rates. Aggressively.
 
Again, if US demand growth sinks the rest of the world including China is happy to take the excess supply:

annualworldoil_demand_growth.JPG
 
I just read on one of the newswires that Bernanke said the dollar will remain 'STRONG and stable'

did I read right? What planet are these clowns living on, last time the dollar was strong was many years ago......
 
Quote from AK100:

I just read on one of the newswires that Bernanke said the dollar will remain 'STRONG and stable'

did I read right? What planet are these clowns living on, last time the dollar was strong was many years ago......
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It is all talk. The dollar will not rally, but will either remain stable or decline. I hope the later because it helps my stocks.
 
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