Sunday, August 12, 2007

Next Change - 'Higher Oil Price'

The title was like a message informing us of a up and coming new show. But this new show will affect every single person in the world, whether you like the show or not (in this case, USE).

In a blog posting last year about Peak Oil, it was stated that oil price per barrel was targetted to hit US$100. Good thing it didn't but it did touch US$78 this year. In fact, oil prices have now been on a bull run for four years. This year alone, they are up nearly 30% (Business Week).

Following expected oil pricing:-
* There is market momentum, and the magic number now is $81.
* If we hit that, most people believe it'll head to $91 or higher."
* Some technical charts predict prices could hit $110 or $118 by the end of the year.

With the worldwide stock markets crumbling unexpectedly, interest rates would have to be raised as governments in Europe, Japan & USA pumped fundings to support the stock markets. Japan was supposed to raise its interest rates and with their increase, hot funds would be affected in Asian stock markets that would cause investors from Europe, Japan & USA to conduct profit-takings.

I'm not predicting the end of the world but economics do have its own cycles.
Tags: Oil Price, Peak Oil, Economics, Stock Market

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