Bet on the Bulls with Oil Prices on the Line

With decelerating first-quarter U.S. economic growth pointing to an unexpected global slowdown, some energy analysts are breathing a premature sigh of relief regarding the immediate future pricing of oil and natural gas.

These oil bears’ reasoning cites the 35 percent global portion of reduced oil consumption generated by U.S. consumer demand. Such pundits also figure that less dynamic American consumer markets will slow the activity that has been emanating from such new economic dynamos as China, India, Southeast Asia’s tigers and Brazil. Some of these seers even predict a balance between supply and demand that could equalize the price of light sweet crude in the $40 range.

Such conclusions, however, are based on today’s short-term factors. They overlook the inevitable crisis not only facing the U.S., but the rest of the energy consuming world.
The Desert Sun