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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Live2Sail who wrote (48718)	9/9/2005 1:25:28 AM
From: Spekulatius	Read Replies (1) of 206313

I read somewhere that Gasoline consumption in Europe is down 4% YOY due to higher prices, so there is definitely some demand elasticity. Some of the demand reduction in the US is certainly due to the "Katrina effect" rather than the high prices directly. More importantly i think is that Indonesia is cutting it's fuel subsidies: quote.bloomberg.com Thanks to fuel subsidies from the governement, gas in Indonesia is probably cheaper than enywhere else in the world. I predict that demand in Indonesia will drop quite a bit (indeed it may take Indonesia into a recession). Then we have Thailand and India with similar problems. With a little bit of bad luck a domino effect could take down some asian economies and reduce demand for crude quite a bit - and then the energy bulls are hosed. A worse case scenario of course but more likely than most bulls believe.

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