Saturday, May 31, 2008

Oil Price´s Coming Collapse


Demand is contracting worldwide and only in the countries where oil is subsidized, like China, Iran, Venezuela (where a liter sells for 5 cents) consumption is still rising. According to the above graph, 7% of world GNP is spent on buying oil. This cannot go on, so oil is due to fall again to sustainable levels.

I am not acting on this insight because I was burned a year ago.

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