martin12

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  • How Much Worse Can It Get For Oil?
    The americans have the solution in their own hands. When they start using less oil the price increase will halt.

    Clearly, the supply side in the world, at present seem to be at a halt point. At the same time the developing world (India, China) uses more oil, as are the oil producing countries(Russia, Saudi Arabia), which are in a boom-state inspired by the high oil-prices.

    Clearly, in this situation, it is not reasonable, that the US will manage to increase its oil consumtion.

    The price need to rise sufficiently in order for demand
    to be destoyed in the US. $120 per barrel oil obviously does not adress the problem, since americans still are consuming more oil then they did one year ago.

    The signal to the market is that the american consumer obviously still find oil cheap, and accordingly it must rise further.

    Perhaps $ 150 will help, but I´m sure that $200 will.
    May 07 12:01 pm |Rating: 0 0 |Link to Comment |View article

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