Fuel - on the way down or just a short hiccup?

down $10 in 2 days... obviously its going to keep going up but was this just a speculators bubble or a new era of instability?

volatility sure but a correction has been predicted

according to some the real price should be around the $80 mark and they predict it could fall below that in a severe correction but we shall wait and see

longer term of course there's only one way it can go

Short hiccup.

It'll never really go down again until demand goes down. There is zero production reserve left in real terms and the daily use of oil is about 88 million barrels which is about 12 million more than total production capabilities...

So any conflict anywhere in the world which puts any supply at risk will immediately spike prices as the other suppliers can't just up their numbers like they've always been able to (until about 2005-ish).

Worse yet, demand for is still growing and - quickly.

So, basically, crude will likely go over US$200 before it ever gets back below US$100.

Freaky thought - in 1986 it was only US$15 (inflation adjusted)!!!

R

The second most abundant liquid on earth.


It safe to say that any ‘scarcity’ has been artificially created.