Here are FACTS. To those peak oil nutcases here, sorry to inject facts into your delusions, but that's life. http://hsgac.senate.gov/public/_files/052008Masters.pdf
its NOT about specs, instituational indexers or you or I! its about too many dollars and EURs and Yen etc. chasing too few goods. Simple really
i think it is simple supply and demand, if it keeps heading higher, demand will fall. think about the lower middle class with little or no saving or people earning $10/hr who drive 20 miles to work. how can they afford to drive that much if gas keeps going up? at a certain price, demand will fall till we reach some equilibrium. its that simple
"What doesn't kill you will make you stronger" - Nietzsche well, unless you go insane or you die first - but you will be incredibly strong when you reached either point - which is arguably what the US is right now - incredibly strong yet insane. Insane in US foreign policy, insane in energy policy, insane in financial policy ... yet strong, very strong.
If you are rich, get ready to get kidnapped and ransomed. You want Mexico in America, you may get it.
Everyone who thinks it's peak oil, or says "let the market do it's thing" needs to read the link above. We are being railroaded by the banks & hedgies. This is a big deal because it effects everything and everyone. Banks & hedgies need to have position limits imposed, end of story.
To be honest, it won't make much difference, because most of the energy markets are trade via the OTC system. The over the counter market is a $520 Trillion a year gozilla. The BIG guys made their trades via Interdealer brokers like GFI, ICAP, amerex, the intercontinental exchange, government funds especulation(sovereign funds) etc etc. Also If you look at the basis diferences between the spot prices vs the futures prices you will find out that its trading at the same level (almost), even the sour crude is trading above the $127 range. In My Opinion, Marc Rich should be the world's richest man in this planet.
WELL we do have "Mexico" in America now there guy. Mexican's are all over, doing things legal and things that are illegal. So, unless you live on another planet.....MEXICO is in AMERICA and they are not going anywhere. Second: Boon just stated oil will be at 150, like it or not. So, the simple facts are- Demand is huge because the Indians and China-men are buying cars, using electric, gas, oil, etc. Demand is huge and the US consumer is still buying HUMMERS when they can't afford them. OIL will shake out all the "Weak" apples. Those who "Pretend" that they can afford xyz, shall be called out. The weak links will fall and the strong will rise. From individuals to Companies. These are just simple, basic, facts that our Congress, our Gov, or any other Gov, are afraid to tell the population. 110 plus oil is to stay for a long long time. So, this will be the "SHOWDOWN" for our country. Lets see who will continue to rise and who will fall.
Hi pal. You have a very valid point. In turkey for example, The price of gasoline is around $11 a gallon p, Yet, this country had a selling a record number of automobiles las quarter. Only at the Asia-Pacific rim 77 millions cars where sold since january 08!! Also people need to understand that to build almost anything you will need crude oil, even to make a Lipstick!!.