Be prepared for higher oil price and the eventual collapse

[phantom_opera]

IMF

http://gailtheactuary.files.wordpress.com/2012/05/oil-price-forecast-with-error-bands.png?w=435&h=447

[Komo]

agree! keep cash away from crash!:D

[phantom_opera]

agree! keep cash away from crash!:D

the questions is when ... oil price now is still below 100USD .... in next 5y, unlikely oil price will be below 100USD

but I do agree that low oil price era is OVER, eventual collapse in 20XX??

[indomie]

the questions is when ... oil price now is still below 100USD .... in next 5y, unlikely oil price will be below 100USD

but I do agree that low oil price era is OVER, eventual collapse in 20XX??
For decades US has been buying petrol for free by printing fiat money and sell US treasuries back to oil producing countries to absorb back the money from the circulation. If the oil producing countries are not interested to buy US treasuries, then the USD in circulation is not absorbed from the market. Therefore u see higher oil price.

[Arcachon]

For decades US has been buying petrol for free by printing fiat money and sell US treasuries back to oil producing countries to absorb back the money from the circulation. If the oil producing countries are not interested to buy US treasuries, then the USD in circulation is not absorbed from the market. Therefore u see higher oil price.

We will see the oil price quote in other currency same goes to the Gold price.

[indomie]

Imagine you have 3 credit cards. Of course u will use the one with the lowest interest rate. But if the merchant don't accept that credit card, u will have to use another credit card even the interest rate is higher.

USD is similar, to protect its de facto status they are lowering the interest rate. However as oil producing countries are willing to accept other currencies, US see it as a threat. They will use intimidation to make sure that USD remain as the global currency.

[taggy]

Imagine you have 3 credit cards. Of course u will use the one with the lowest interest rate. But if the merchant don't accept that credit card, u will have to use another credit card even the interest rate is higher.

USD is similar, to protect its de facto status they are lowering the interest rate. However as oil producing countries are willing to accept other currencies, US see it as a threat. They will use intimidation to make sure that USD remain as the global currency.


i read the petroldollar link u posted before, interesting :)

[eng81157]

until someone topples USA as the top honcho around, u won't see an alternative. china is trying to usurp its position but i don't think yuan is a good denominator for global trade, unless its government radically reforms its policies and relinquishes market control.

http://www.businesstimes.com.sg/premium/top-stories/will-hk-blink-first-global-accounting-spat-20130328

[zzz1]

If we say that oil is self renewal , what happen is self explainary , but to sell this ideal will not going to justify.

To begin with , we are taught how oil is produce but yet nn body can proof it .

What happen in reality is that there are some instance where the dried oil well started to produce oil again... And scientists are studying hard on this to prove it...

I think many ppl find it hard to believe , I find it hard too......

[hyenergix]

If we say that oil is self renewal , what happen is self explainary , but to sell this ideal will not going to justify.

To begin with , we are taught how oil is produce but yet nn body can proof it .

What happen in reality is that there are some instance where the dried oil well started to produce oil again... And scientists are studying hard on this to prove it...

I think many ppl find it hard to believe , I find it hard too......

Oil migrates from other source rocks.

[zzz1]

Oil migrates from other source rocks.
They(scientist) conjecture the believe that hydrocarbon could be the by produce of some micro organism or bacterial ...

But the oil major and oil output countries will see that as a depression news...

[hyenergix]

They(scientist) conjecture the believe that hydrocarbon could be the by produce of some micro organism or bacterial ...

But the oil major and oil output countries will see that as a depression news...

Unlikely. I know quite a bit of stuffs in oil and gas.

[zzz1]

Unlikely. I know quite a bit of stuffs in oil and gas.

you are in O & G industries ? earning good bux ;)