here's the audio: http://www.traprockpeace.org/scott_ritter_23june05.html Ritter nails this one... the neocons are busted. too bad our media is a farce.
I don't know where this info came from about China using less oil this year. PBS had a show the other night predicting that China will be using more oil than the US in about 20 years, and they are using 40% more than a year ago. Why do you think they want to buy Unocal. They want to get that oil reserve for themselves. They have been buying other energy assets around the world. And except for gold, China is responsible for the bull market in metals: palladium, platinum, copper, silver , etc.
No, it isn't Insiders almost only buy at levels they feel are severely depressed, when the market has failed to discount long term fundamentals and prospects, which the market rarely does anyway. Even most professional investors sit on their hands during bear markets. The insiders are exercising options by and large and they are price and time delineated. What it means of course is thata significant portion of the capital markets has become a perverse wealth shifting mechanism. Investors AREN'T INVESTING when insiders sell! They are shifting thier wealth to the scrushy' and others. When the proceeds go to the corporate treasury, that's investing. In theory. In practice, it just goes to the corporate insider in the long run anyway.
Valero looks like it might have just made a double-top here. Needs a little more work, but when this thing SLIDES, it really goes for quite awhile . . .
The International Energy Agency projects worldwide DEMAND to reach 86 million barrels a day sometime in Q4 of this year. "You need more than growth slowing down to bring prices down," said Paul Horsnell, director of energy research at Barclay's Capital in London. "You also need production capacity to start increasing. Growth slowing down only means you'll hit the brick wall more slowly. That's not much comfort." NY Times, C9, Business Section, 6/27/05
"You need more than growth slowing down to bring prices down," Look back to 97 when oil hit $12 barrel. that was due to growth slowing not production increasing.
Look...a high percentage of the price...has been created out of thin air by speculative hedge funds........ Look at the increases in oil related contract volume.... When interest rates and other returns are so low all over the world...a fund can look like a hero at 16% per year... Hey they just need to make this in any short time frame...and then coast the rest of the year... Its just sad how this type of speculation hurts the wrong people......