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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (34662)	8/1/2005 1:33:02 PM
From: CalculatedRisk	Read Replies (2) \| Respond to of 116555

I haven't really predicted oil prices (too hard for me!) except to suggest I thought it was possible we could see $40 again in the next 2 to 3 year - if the economy slides into recession. With Oil, we have strong demand growth and limited excess capacity. Both the supply and demand curves are steep (hard to bring more to market so supply is steep, people respond slowly to price increases so demand curve is steep). This means we can see large price movements in either direction. All up recently since demand is staying relatively strong. I've been checking the DOE site for any sign of slack in demand ... none yet. How about you?