Population and Oil

[neonlyte]

Oil Poised for Drop as Price Gap to Gasoline Widens (Update1)

By Mark Shenk
...

`The next move will be south toward the low $70s and high $60s before the end of the year, primarily as more bad news comes from the U.S. economy,'' said Pierre Martin, a Frankfurt-based manager of a $565 million commodity fund at DWS Investment GmbH, a unit of Deutsche Bank AG.

Err... no. Might be a short term lowering of prices but US consumption has been stable or declining for three years, with no slackening of oil prices. The slack, if there is any, will be taken up by Asia Pacific currently expanding consumption at around 7% p.a.. In the Eurozone, oil priced in dollars is 27% cheaper than 1st Jan 2004, we are actually reducing oil overhead costs without needing to do anything though that might change if the dollar continues to fall in face of a weak economy, OPEC oil might be priced in a currency other than the US$, that could precipitate a further bout of dollar devaluation.

 

[trysail]

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