Hybrid Technologies, Inc. (HYBR.OB): Will Oil Ever Return to Previous Levels?
QualityStocks (December 10th, 2008) Writes:
With the price of oil plummeting nearly $100 a barrel since July, people have something to feel good about during this difficult economic time period; however, it may lead to the dismissal of the peak oil theory. For those not familiar with peak oil, it is the point in time when the maximum rate of global petroleum extraction is reached. After this point in time, the rate of production begins to steadily decline.
With the relatively cheap oil prices, the cost of bringing new oil into production is too expensive. As the International Energy Agency (IEA) has repeatedly warned for more than a year, excessively low prices will discourage investment in production, especially with the steadily rising costs of extracting and processing oil from increasingly difficult places. This lack of sufficient investment has serious consequences for the future supply once the global economy recovers from its current
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You can see that gold is still channeling lower, but has touched the bottom of its recent downtrend. When it has done this in the past, it usually goes higher for quite some time.At the same time, we are getting a buy signal from the MACD indicator on the bottom -- another indicator of the shift in short-term trend. And gold is now above its 10-day moving average. This usually indicates higher prices ahead.However, I still haven't given buyers of my recent gold report the "all clear" to buy gold and silver positions. That's because the weekly indicator I told you about in that report has still not given a ... 



