Flood myths are common to human culture. Swollen rivers, tidal storms, and tsunamis make their appearance frequently in literature. But Hurricane Sandy has shifted the discussion from storytelling to reality.
Those with very deep pockets can drive up the price of just about any commodity, but typically only for a very short amount of time. Unless of course they have access to a virtually unlimited supply of paper money.
China has kept investors on the edge of their seats, as we wait for some monetary or fiscal action. Every day that goes by with no significant policy decisions from the Asian giant causes the market to lose confidence in its ability to steer its ship.
Massive natural gas discoveries along with new extraction techniques have led many to proclaim nat gas as the fuel of the future. The author and energy trader who has recently released a book takeing a look at corruption within the oil sector addresses these claims in an interview.
With ample stores and cheap prices, natural gas-related equities have taken a beating and continue to be battered. While it is always difficult to call a bottom, the tide may be turning for natural gas companies despite the latest data.
While Chinese demand growth for commodities is not expected to be as robust as it has been historically, demand is expected to pick up throughout 2012. China’s rapid growth and increasing reliance on other countries for key resources has made a powerful case for commodities over the past several years.
In the new oil cycle, a debt crisis is no longer solvable with growth. Devaluation or jubilee are the only options. The loss to society will be borne most directly by those who hold sovereign debt as their savings. The time of containment is over.
A larger, wealthier class of people in the emerging world are demanding more goods as they raise their standard of living and the supply of these goods is impacted by geopolitics, diminishing mature sources and even weather.
Global crude oil production has leveled off at 74 million barrels per day. However, now that economies are recovering, consumption levels are back on the rise and the result will be an inevitable rise in oil prices.