Why Oil Is High … And Going Higher
Source: http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold/0/0/-why-oil-is-high--and-going-higherPosted on Monday, June 16th, 2008 | In Current Market News, Energy Markets, Gold Markets, Stocks to Watch
The talking heads on CNBC are
wondering why oil prices keep going higher. Well, a picture is worth a
thousand words, so here’s why …
Source: Netoilexports.blogspot.com
You can see exports are down year
over year while demand keeps rising. And that’s why the Saudi agreement
to pump more oil isn’t calming the markets — it’s too little too late.
Saudi Arabia, United Arab Emirates, Iran, Kuwait, Iraq and Qatar curbed
their output by 544,000 barrels a day last year. At the same time,
their domestic demand increased by 318,000 barrels a day. So, their net
exports dropped by 862,000 barrels.
It
would seem that the proposed rise in Saudi production of 200,000
barrels from June to July, on top of the 300,000 bpd rise in May, is
not enough to even make up for last year’s cut in OPEC exports.
Here is some other news you can use …
Analyst: Air fares could double if oil prices keep rising Airlines
may have to double fares this year if crude oil prices rise above $150,
industry analyst Michael Boyd warned Friday. Ticket prices will need to
jump 80 percent to 100 percent to cover the airlines’ jet fuel if oil
prices go that high, he said. “As of June 2008, the entire U.S. air
transportation system is operating on borrowed time. Between January
and today, the situation has degenerated from a crisis to a survival
situation,” the president of the Boyd Group said in a report.
China Becomes Net Gasoline Importer for First Time China
was a net importer of gasoline for the first time in May as rising oil
costs discouraged refiners from processing crude into fuels, and in
preparation for the August Olympic Games.
In other news, Peak Grain may not be far away …
Floods push U.S. corn prices to records Rain
in the Midwestern United States has damaged crops and delayed
plantings, heightening fears that there might not be enough corn to
meet global demand for food, feed and biofuel. The fears drove the
grain to a record high for the eighth trading day in a row.
Last 5 posts by Sean Brodrick
- The Golden Phoenix - February 25th, 2009
- Blessing in Disguise - February 4th, 2009
- What I'm Reading Today - January 7th, 2009
- Gold and Oil Short-Term Trends - January 7th, 2009
- Is Gold Poised for a Pullback? - January 6th, 2009
Air Fares, Air Transportation System, Cnbc, Corn Prices, Crude Oil Prices, Current Market News, Energy Markets, Global Demand, Gold Markets, Industry Analyst, Jet Fuel, Michael Boyd, Oil Costs, Olympic Games, opec, Plantings, Refiners, Saudi Arabia, Stocks to Watch, Survival Situation, Ticket Prices, Time China, U S Air, United Arab Emirates
 About Sean Brodrick (http://blogs.moneyandmarkets.com/blog/red-hot-energy-and-gold)
Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research’s small-caps specialist, especially in natural resources, and is the editor of the company’s Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets. Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world’s leading publisher of offshore asset protection strategies and global investment opportunities. Recognized for his expertise on natural resources and Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box, Fox Business, CNN, The Glenn Beck Show, Your World with Neil Cavuto and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada’s premiere financial websites, HoweStreet.com. His report, “70 Days to Empty,” has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by The Daily Reckoning as “the most important report you’re likely to read this year,” while his knowledge of uranium has helped investors earn solid gains on the commodity. Mr. Brodrick holds a B.A. degree from the University of Maine. |
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