As the charts below
show, has oil not only traded higher but futures contract looking several years
ahead are also appreciably higher. In the recent past, nearby future contract
were higher but distant futures contract contemplated lower oil prices. That
has begun to change over the past quarter.
High oil prices are no
longer being looked at as a “temporary event of uncertain duration.” Between China‘s growing use of petroleum, their global
attempts to assure a study supply, the Iran situation, high Oil may be a
persistent part of the market’s future (Notice no one is even talking about
post hurricane recovery anymore).
Quote of the Day
"I don’t think the heavy
stuff is going to come down for a while yet."
Alan Abelson, in this morning’s Barron’s, quotes Macro-Maven’s Stephanie Pomboy on why the consumer is soon to be spent-out: “Whatever those worthies were smoking, it must have smelled pretty good because the investment mood until this past week was happily, giddily upbeat. The sentiment readings were almost uniformly bullish. Those blue skies were virtually cloudless:…Read More