by FoxV » Fri 18 Jul 2008, 14:44:41
$this->bbcode_second_pass_quote('joeltrout', 'T')he US is welcoming demand destruction and after the Olympics China will usher it in also.
$80 oil here we come. Good thing $80 is still high.
joeltrout
Will never happen. If oil drops to $80, then any demand drop in the US will be quickly picked up by the many countries with subsidized fuel that are experiencing shortages right now (particularly India and China)
The other part to the oil price equation is the USD. We've only started the banking collapse. There's a lot more write-offs to go yet (and lets not forget Freddie and Fannie are about to go belly-up). If oil drops to $80, Fed rate drops to 0%.
Oil may reach $100 from a technical swing, but barring something like a world pandemic, we'll never see oil in single digits again.