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World Crisis scenarios for the 21st Century – Peak Oil. (update 11)

Posted by Adrian on May 19, 2008

World Crisis scenarios for the 21st Century – Peak Oil. (update 11)

Oil continues it’s steady climb (closed at 126.29 a barrel), as it can be seen in graph below; there doesn’t appear to be overbought signals here at all. Therefor you would be hard pressed in assuming that a bubble is forming in the oil markets, or it’s over priced.

The recent tragic earth quake in China (Sichuan Province) will effect the oil price (push it higher), reports have indicated the Chinese government will release 6, 313 tons (could end up being more, depending on the scale of the rescue and clean up after the quake) of oil related products (jet fuel, diesel etc) to help the relief effort. This oil comes from the massive Chinese reserves, as China has horded and kept provisional amounts of oil (in respect to their economic expansion) because of the global scarcity in oil reserves and output.

There is no oil bubble, oil will be heading towards $150+ a barrel in late June early July.

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