Will oil move higher again anytime soon?
Best Answer
678 points
BoxCar answered 8 months ago …
Supply and Demand will determine the direction OIL will go. We forget that FUEL is
only one component of OIL demand and I've noticed on recent trips traffic has slowed
A 10% reduction in speed means 20% reduction in consumption. Rest of OIL is used
for Plastics & synthetics. If consumer sales are off, inventories are not replenished &
demand for Plastics drops. Thats why you get OIL tankers unsold on open market.
Now if Israel attacks Iran, all bets are off because Arab nations could bring western
world to its knees by simply shutting off the OIL spigots. With religious nutcases
ruining the world (US included) that's not an unlikely scenario- Sorry about that
Answers
3680 points
MNSL answered 9 months ago …
I do not think so.
We will have to wait until end of 2010 to see the direction of oil market.
Even if OPEC cut oil or investment banks write oil reports still oil will go down this time.
I think oil will come down to $ 40 a barrel sooner than later.
474 points
spider348 answered 8 months ago …
I think regardless of who wins the election we will see less demand for oil and increased supply. The donkeys will work the alternative fuels. The elephants will also work the alternative fuels and step up domestic drilling efforts. But both will take time to fruition. In a recession (like now) there will also be less demand because we drive less, fly less, consume less. Since companies cannot grow their businesses during recessions as robustly as in 'good times' that reduces demand as well. And, if the recession is global, then the other countries oil demand will pull back. I read a couple of very large countries have built up huge supplies of oil. On the charts, everything still points south. However, I am looking to capitalize on a short term bounce out of this 'oversold territory' - to bet on the continued slide seems like trying to catch the proverbial sharp knife.
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