$100 Oil Is The New Norm

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strive4impact's picture
strive4impact
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$100 Oil Is The New Norm

 

Barclays Analysts:

Sovereign debt problems in Europe and a lackluster U.S. economy, including consumer numbers on Friday, are all bearish news and data for oil near-term. However, given the current economic situations in the world economy compared with the housing and subsequent credit bubble burst in 2008 and 2009, Barclays expects oil price pressure on the downside is much different this time around.

“Global oil demand growth is on a solid upward trajectory, as structural changes in non-OECD countries underpin most of that rise,” writes Amrita Sen, a Barclays energy strategist in London. “The ineffectiveness of the supply side to catch up with it has created an extended period of supply capacity tightness, which will be apparent in 2012. Against that backdrop, key oil producers seem set on a sustained path of far higher social expenditure and therefore far higher oil price requirements…$100 oil, in our view, is the new sustainable norm.”

http://www.forbes.com/sites/kenrapoza/2011/08/12/low-oil-prices-not-here...

Low oil prices?  That's what oil traders have right now, but I'm fairly certain it's not what people see at the pump.

Damnthematrix's picture
Damnthematrix
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shortages will be the new norm

Don't you just love spin....  " “The ineffectiveness of the supply side to catch up with [demand] has created an extended period of supply capacity tightness, which will be apparent in 2012"

Extended period?  Like.... forever?  I've read (and posted as such recently) that strategic reserves all over the world are fast being drawn down to stop the price rising.  Come the day the reserves run low, and some pundits are saying before the end of THIS year let alone 2012, shortages will occur, and the price of oil becomes anybody's guess.

ewilkerson's picture
ewilkerson
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Posts: 390
Thanks strive4impact   an

Thanks

strive4impact's picture
 
and
 
Damnthematrix's picture
 
for the interesting insight.  My feeling is that by the first quarter of next year we will hit those higher levels.  Whether that is going to be high enough to accelerate the collapse of Europe is another debate.
 
Cheers,
 
Ernest
ewilkerson's picture
ewilkerson
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$2.00 a gallon gas from Michelle Bachman

I couldn't help inject a little politics when I just heard Michelle Bachman say she would give us back $2.00/gallon gas.  I guess we can shut down the web site now...LOL

Cheers,

Ernest

strive4impact's picture
strive4impact
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Posts: 10
Promises of $2 gas = SPAM Mail.
ewilkerson wrote:

I guess we can shut down the web site now...LOL.

Unfortunately, Bachmann's promises may carry more weight than Ron Paul's truths with the masses, especially if mainstream media continues to marginalize his results.

http://goldsilver.com/video/indecision-2012-corn-polled-edition-ron-paul...

ewilkerson's picture
ewilkerson
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Posts: 390
strive4impact, You are

strive4impact, You are right. Ernest

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