I guess that would depend on what chart you look at, if you look at this chart of the Nasdaq 100, then we are right back to November 2003.
The Arabs can send oil up to 200 USD, but no one is going to buy it. Why indeed is Saudi Arabia hinting at 60 USD per barrel, last Thursday (which took oil of its highs at 75)? You actually think "arabs" control oil? LOL. Western oil corporations control oil. For every $50 barrel of oil, Exxon makes well north of $100. Saudis do what they're told to do. They're puppets who would have been long dead if they weren't paying for "protection". There was demand destruction at around 70 USD per barrel. Right now, there is demand destruction going on (i.e. above 60), its just that the major financial institutions are being allowed to unwind out of there oil positions. And hence the volatility in the markets. You gotta love cute terminology like "demand destruction". What exactly is "demand destruction"? would you please describe it? Also please elaborate on who you think "is allowing" major financial institutions to "unwind"? Why do you think that emerging markets have taken a hit? Not because of Oil prices. Most emerging markets are agrarian, if the farmer is still using ox carts to take produce to market, the price of oil is irrelevant. Emerging markets will not "take a hit". They will COLLAPSE for a very simple reason. No more free money, it's called liquidity dry up ( another cute terminology!) Anyway if there is naivety, then why the rush to produce ethanol. How many people on ET or in the world know about the Du pont, BP and butanol. Indeed why even produce butanol? Why then even consider alternative energy sources? Feel good bull shit legislation produced for the consumption of the cows, opps I meant the general population. The fact that American cars give the same gas mileage they did 30 years ago should tell you who is in control. In fact some "latest models" give LESS gas mileage than cars 30 years ago! I agree large financial institutions "are being allowed" to unwind positions. The reason is two-fold. First, the global economy is about to enter into a prolonged recession ( or Depression ). During economic slowdown there is less need for oil, therefore the price will naturally drop since we move from Supply = Demand to Supply > Demand. Secondly, a price drop in crude will drive out of existence all the alternative energy initiatives being started at the moment. My belief is that Crude will hit 50 sometime next year if only to wipe out alternative energy investment projects. It probably won't be allowed to go below 50 because then they Jeopardize their massive investments currently being undertaken in the Canadian Oil Sand projects.
To cut out the noise of the s&p, dow, and nasdaq I base where the market has been by looking at the russell 3000. It includes all of them and the overall market has been up for a solid three years.
It was a very good post by BSMETER and even if you don't believe it you can be sure of one thing. Oil is not going to be replaced by alternative energy anytime soon if at all. We couldn't plant enough corn in this country to supply our energy needs. Any synthetic fuel will always be more expensive than oil. Oil companies can be profitable at $15 a barrel, and if need be they will force alternative energy companies out of business no matter how much the government subsidizes them.
Wrong. Price of electricity is not directly related to the price of oil. It's not as simple as "let's see what the price per barrel is". Lot more goes into the picture, bottom line is that even if price of oil drops to $10/barrel, the rates will still keep going up. True price of oil takes into account CO2 emissions, which are currently being monetized through environmental derivatives.
We are running out of oil, thats the point. Their is a LIMITED SUPPLY, Think! Is the world growing? Think how many cars are added to the roads each and every day. My 15 year old son is about to start driving, just think about all he energy the world consumes its mind boggling. Consumption is growing at astronomical rates, their in lies the problem. To sit back and do nothing is suicide.
I'm not saying we should sit back and do nothing. All I am saying is oil is not going to be replaced significantly in my lifetime. There is just too much of it, and it's easy to get out of the ground. Everything is limited in supply, but until we find a way to make fuel out of salt water, or solar power, oil is going to be the cheapest form of energy we have for quite some time.