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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (25155)12/3/2009 2:35:53 PM
From: Tommaso  Read Replies (1) of 71475
 
A very slight deficit or excess of supply in a commodity causes a leveraged shift in the price of the commodity, unless there is government intervention either to ration the restricted supply or to buy up the excess.

The new technology of fracking and the huge shale deposits that can be exploited by fracking assure that there will be excess supply for a long time.

The excess may well even be sufficient to keep some pressure off crude oil prices.

One area where this is good news is tar sands. Converting bitumen to crude oil is a way of making natural gas into gasoline that is cheaper than reforming methane into longer-chain paraffins.
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