Summer is almost here. We have seen oil jump 30% in 1 month and you all know that when oil gets to the higher prices it starts making those crazy 10-25 dollar daily jumps like it did last year. Anyone else thinking we will see at least 90 dollar oil before july hits?
$70 is a given. $90 would be a disaster for consumer spending, but its not unlikely with NK and Iran heating up.
You're still thinking fundamentals are in place. Global demand can be Zero and oil will still get to $70. They don't care!! As long as we got thir "Air pocket" rally going on, Oil might as well get a piece too. All those savings consumer are saving up will be spent at the pump when they do the little driving they're going to do.
China was using 7.88 million barrels of oil per day in 2007 (i dont know what they use now) but china has got alot richer in the last 2 years while we got poorer. Its pretty obvious that china & india will pick up our slack. Especially now with all those tata nanos running around india. People who used to ride a bike are now going to be driving those things.
China is using little over 10MM barrels a day now and US is around 21MM They are catching up big time Data from IEA website
I live in a large mid-American city and almost half the vehicles on the road are trucks, SUVs and Mini-vans. Once oil prices came down, almost everyone lost their fleeting interest in hybrids. America's love affair with big vehicles combined with the government's monetization of our debt leading to a sinking dollar and rising inflation, guarantees that we will see oil much higher than $150 per barrel within the next few years. For long-term investors, buying pullbacks in oil stocks and ETFs (I like XLE) will certainly outperform the cash sitting in your money market account.
Biggest one month gain in Crude in the last 10 years, wonder what we can expect for the month of June and the rest of summer as it gets manipulated to the upside.
I noticed that when oil prices were surging many people will still driving Suvs, I did see more hybrids on the road as oil topped out at around $150, but since oil has come down and price at the pump was cut in half there are more Suvs on the road then ever. I have no clue why soccer moms like to drive the escalades and yukons for them and their 2 children. I guess the bigger the vehicle the more attention they get, I guess its a status symbol of some sort. Anyway the interest for big toys will never go away.
Exactly...its a status symbol for them (in their own minds of course). And so many people are willing to pay for that status symbol. I remember seeing something a few years back (I think it was on dr. phil or one of those talk shows) There was a guy that was living with his parents and was spending 70% of his income on his car payment. (I think he had a hummer or mercedes or something that was 50k+) The guy was making like 2k per month from his job if i remember right, so all he did was work, and then go drive around in his car. This is actually the mentality of alot of people. They will pay more than they can afford to have that status.