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Strategies & Market Trends : John Pitera's Market Laboratory

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To: robert b furman who wrote (9479)	5/23/2008 10:27:42 AM
From: Hawkmoon	Read Replies (1) of 33421

What's going to stop price is a demand reduction. Not going to have much demand reduction so long as developing countries, such as China and India, continue to subsidize gasoline.. And since, in most of these countries, except democratic India, their non-democratic governments use fuel subsidies as a means of "placating" their masses, it will be pretty difficult for them to withdraw these "entitlements". And the question REALLY IS whether future oil production increases can keep up with global demand increases. We might reduce our oil consumption, but we're relatively wealthy enough to finance the technologies required (Hybrids.. etc).. These "smoke-stack" economies that are developing outside of the US will be far more energy intensive than our own. But just from a Technical Analysis perspective, it would seem that oil was heading for $150/bbl, even if completely unjusified. There's just no resistance overhead, yet the price hasn't yet fully gone parabolic in a blow-off top that would clearly indicate sector wide distribution (pending additional data over the next week). Hawk

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