If I knew the exact reasons, I'd be making a fortune on the commodities market.
Demand isn't down overall. China, India, and other nations are sucking up oil now like there's no tomorrow. U.S/North America demand is leveling off--although at a high point--but that's because we're already near the top of the development plateau. We don't have a billion people still waiting for their first car.
I think a lot of this might be due to the recent weakening of the dollar, combined with the shakiness of a long-favored investment asset, real estate. Oil looks good as an investment right now, and I think at some point it's going to become obvious we're in a bubble, and the price is going to drop precipitously. Going to be fun watching politicians run around taking credit for it.
But it's never going to get as low as it once was. The supply and demand issues are real ones.
re: so...
The whole thread (28 posts)
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