In 2001 before 9-11 global oil demand was 27 billion barrels per year. Today before the price rise we have just experienced demand was about 35 billion barrels.
In 2001 before 9-11 a barrel of oil sold for about $18.
Today $145.
Production is increasing rapidly and more all the time while at the same time demand if going thru the floor.
Geo Political uncertainty (like blowing up Iran) makes traders nervous.
But when I say with certainty that the supply demand fundamentals of the oil markets are fully out of whack I say it with confidence.
Now, to be sure, oil must be higher than it was before 9-11. It was artificially low then. Now it's artificially high.
So, just bide you time. Patience is a great rewarder. I have patience that time and patience will pay out for the doubters about the Iraq War, tax cuts and the price of oil.
Hang on folks, Adam Smith's moving the invisible hand.
Gas is finding a top.
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