Commodity Trade Mantra

Posts Tagged ‘Higher Oil Prices’

Why Oil Prices Will Rise And Many Will Be Caught By Surprise

Oil industry investment is far below levels required just to replace production. The only thing that will change the vector of these declines is lots of spending, and the only thing will spur lots more spending is higher oil prices. Just like all the oil bulls had to be run out during the declining price stage, all the price bears will be run out when fundamentals hit them over the head.

How Fast Are We Approaching A Global Deflationary Crisis?

Describing Crisis – needs to relate all of these elements together – policy failure, debt, imbalances, energy. Each element is causatively connected to the others but sometimes in a time lagged way which obscures the relationships. Together these elements are bringing about what some observers are calling “secular stagnation”.

The Energy Factor to Push Gold to New Highs

Energy cost increases substantially in the gold mining industry today as they are extracting gold at 20 times less the yield as in late 1800’s. As ore grades decline, it takes a great deal more energy to extract and process the same or less metal.

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