January 5, 2012 9:45 am
What will be the reason this time for oil prices to increase. Iran is the focus these days, even as the DOE inventories have show sustain gains over the past few weeks. So, we know that it is not the lack of oil that is driving up prices.
Perhaps it is the global growth story that has many traders betting on the fact that there will be a great demand on the way. Of course we would have to make the assumption that there was actually global growth for that argument to hold up.
Anyway you want to look at it, the facts are the facts. Less consumption of oil products are increasing invetories and the rules of supply and demand will eventually take hold. Either we will see demand pick up, or oil prices should drop.
Of course if there is action taken by Iran to stop the flow of oil, or if there is any supply constraint imposed on the importing of Iranian oil to the U.S., we could be in for a real problem, right? Well, actually the fact is that the U.S. does not get a whole heck of a lot
http://www.thedisciplinedinvestor.com/blog/2012/01/05/oil-prices-out-of-whack-with-reality-gas-consumption-plummets/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+thedisciplinedinvestor%2FEBHR+%28The+Disciplined+Investor%29
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