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Strategies & Market Trends : BAK - Investing
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To: XoFruitCake who wrote (2688)5/16/2012 12:05:27 AM
From: Covenant  Read Replies (1) of 3249
 
Re: NE continues to slide

US is not the marginal buyer of oil or natural resource stuff since we don't manufacturing stuff much more..

Recessions in other parts of the world tend to mean reductions in the growth rate of oil usage, not usage reductions. The US can reduce in recessions because of our proportionally high usage rate. Each car sold in Chindia is like an annuity to oil producers.

Top that off with Japan abruptly shutting down their nuclear plants. The initial Japanese strategy was to reduce energy consumption by everybody making sacrifices and doing without. Even in a place like Japan where the culture has self-sacrifice for the common good as an embedded principle, this only lasts so long. Oil and NG will both be demanded in higher quantities for electricity.

To me the real fat pitch on the oil patch is if and when brent hit between 75 and 85 if there is no war in ME..

That would be a fat pitch indeed. Odds of that happening seem quite low to me.
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