The fed can do little to reinflate the credit bubble that is bursting. They got us out of the 2003 recession by causing a housing bubble. This tool is now out of the arsenal. So how will the economy get out of the 2007-2008 recession? Commodities will crash including oil. $1.4 gasoline will get the consumer back on track.
Oil must fall to $28
- Thread starter silk
- Start date
Oil is headed to $70 before it's ever headed to $28.
There is real and growing demand for oil on a global basis, and the costs of extracting the oil keep rising.
Ethanol, solar, wind - they're all drops in the bucket when it comes to the energy needs that have to be supplied by oil.
There is real and growing demand for oil on a global basis, and the costs of extracting the oil keep rising.
Ethanol, solar, wind - they're all drops in the bucket when it comes to the energy needs that have to be supplied by oil.
Friend of mine has been on the PO bandwagon for a while...been buying crude since the mid-teens. He's scaled back his futures position considerably to focus on the farming/solar home building (he's a true Peak Oiler)...
What's interesting is the unbelievable contango that has developed. Looking at the K/Z spread will tell you how not worried the market is about supply...
$40 floor, and probably a solid concrete one at that...
What's interesting is the unbelievable contango that has developed. Looking at the K/Z spread will tell you how not worried the market is about supply...
$40 floor, and probably a solid concrete one at that...