Effects Of Celebrex
If you think that people are incensed over AIG bonuses, wait until Gas hits $3 per gallon this summer. Two nearly identical reports have been issued by McKinsey Consulting and Cambridge Energy Research saying that an oil price spike is likely.
“The recession has curbed demand for oil, pushing prices down sharply from their peak last summer – effects of celebrex.But without aggressive steps to improve energy efficiency, the world is “risking a second spike in oil prices” in the near future, according to a new study by consulting firm McKinsey & Co.”
Click for ARTICLE 1, Click for ARTICLE 2
- Sky high oil prices may be just around the corner
- Tim Catts
- Daily Finance
- March 24, 2009
“Sharp reductions in investments and low oil prices could curb future supplies by almost eight million barrels a day within the next five years, according to a study scheduled for release Friday, the latest warning that the world could face a new energy shock when the economy picks up.
The report by Cambridge Energy Research Associates, an oil consulting firm, said that the potential drop in production capacity is a “powerful and long-lasting aftershock following the oil price collapse.”
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- Rising Fear of a Future Oil Shock
- Jad Mouawad
- New York Times
- March 26, 2009
Now the economy is still getting worse, unemployment is still rising, people are still losing their jobs and yet we’ve seen the stock market start to go up. Why? Because the stock market is forward looking and traders think they see some light at the end of the tunnel (let’s hope it’s not an oncoming train).
The oil bubble has burst but Congress has done ZERO in terms of any regulation that would prevent the large Wall Street traders from coming right back into the oil markets with a vengeance. The henhouse door is still wide open and the foxes are still hungry. Oil is still completely financialized (see it rising with the stock market?)!
Fears of inflation or a weak dollar combined with a pick up in economic activity might be all that is necessary to send billions upon billions of “investment” pouring into oil and driving up the price to $70, $80 or $90 per barrel. It does not take actual demand by oil consumers to drive the price up. Speculators that see a hint of demand on the horizon can gun the price long before actual demand arrives.
So imagine in the heat of the summer when people can’t run their A/C because it’s too expensive and they’ve lost their jobs and possibly their house. What will be their attitude then toward Wall Street!?
UPDATE: Here is an Appetizer from the G-20 Summit
And please remember that pension fund allocations happen quarterly on the 5th – 10th trading days of the month. So if oil starts climbing April 7-14th you’ll know why.
It’s rather strange that both McK and CERA call for oil prices to go up again, usually they don’t play invesculors’ game.