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All about Oil: an overview

Posted By Barry Ritholtz On October 3, 2004 @ 2:45 am In Finance | Comments Disabled


Max Sawicky observes
“The most important story that nobody is talking about is fifty-dollar-a-barrel oil. The potential harm to the U.S. and world economy is huge.”

Well, we here at the Big Picture have been pounding the table on Oil over the past 13 months . . .

Most recently, we observed Oil = $50 a Barrel [1], including a chart demonstrating why there is no “terror” premium. (these comments were picked up by The Wall Street Journal and Barrons [2].

Early on, we recognized that it was Chinese Oil Demand [3] underlying the increase in cost. We also looked at Oil Demand versus Refining Capacity [4]. We have examined Global Crude Oil Demand & Gasoline [5], we looked at Oil: Inflation adjusted [6].

We asked a lot of rhetorical questions about Oil: Why is it that Gasoline Prices seem to rise so quickly, but fall so slowly? here — Gasoline versus Crude Oil prices [7].

We wondered: Do Higher Oil Prices Lead to Recessions? [8] Turns out the answer is yes.

We looked at whether Oil Jitters Gotten Overblown? That answer was no. We also observed that Large Hedge Funds [9] have been ignoring our good advice — at their own loss.

Lastly, we addressed the false idea that Oil price rises are like a tax increase [10]. Our sentiments were echoed by Caroline Baum of Bloomberg [11].


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/10/all-about-oil-an-overview/

URLs in this post:

[1] Oil = $50 a Barrel: http://bigpicture.typepad.com/comments/2004/09/oil_50_a_barrel.html

[2] The Wall Street Journal and Barrons: http://bigpicture.typepad.com/comments/2004/09/wsj_barrons_pic.html

[3] Chinese Oil Demand: http://bigpicture.typepad.com/comments/2004/05/chinese_oil_dem.html

[4] Oil Demand versus Refining Capacity: http://bigpicture.typepad.com/comments/2004/03/chart_of_the_we_6.html

[5] Global Crude Oil Demand & Gasoline: http://bigpicture.typepad.com/comments/2004/09/crude_oil_gasol.html

[6] Oil: Inflation adjusted: http://bigpicture.typepad.com/comments/2004/08/oil_inflation_a.html

[7] Gasoline versus Crude Oil prices: http://bigpicture.typepad.com/comments/2004/08/gasoline_versus.html

[8] Do Higher Oil Prices Lead to Recessions?: http://www.ritholtz.com/blog http://bigpicture.typepad.com/comments/2004/06/does_higher_oil.html

[9] Oil Jitters Gotten Overblown? That answer was no. We also observed that Large Hedge Funds: http://bigpicture.typepad.com/comments/2004/06/have_oil_jitter.html

[10] Oil price rises are like a tax increase : http://bigpicture.typepad.com/writing/2003/10/repeat_after_me.html

[11] Caroline Baum of Bloomberg : http://bigpicture.typepad.com/comments/2004/05/readit_here_fir.html

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