Why is oil going high and going higher? Well, basically, the world economy is growing at 4%. The world oil supply is flat or growing — at most — 1%. The world economy runs on oil. And that’s a recipe for higher oil prices.
Here is a movie you might want to check out …
And here’s another one. I don’t know if they’re really making a movie of Kunstler’s book, but the book is great. Here’s a movie trailer … maybe it’s just an ad for the book?
Quote for the day …
‘Control the oil and you’ll control the nations; control the food and you’ll control the people.’ — Henry Kissinger.
Here are some stories of interest …
Manufacturing a Food Crisis
When tens of thousands of people staged demonstrations in Mexico last year to protest a 60 percent increase in the price of tortillas, many analysts pointed to biofuel as the culprit.
UBS Now Sees Oil Marching to $156 Yearly Average by 2012
The firm now sees crude oil prices averaging $115 a barrel this year and reaching an average of $156 a barrel in 2012. This will benefit major oil companies including Chevron Corp. (CVX), which it upgraded to buy, as well as oil service and drilling companies, several at which UBS started coverage Thursday also with buy ratings.
Oil Rises to Record Above $127 on Goldman Price Forecast, Chinese Imports Crude oil rose above $127 a barrel for the first time after Goldman Sachs Group Inc. raised its oil price forecast amid speculation Chinese diesel purchases will strain limited supplies.
Setubal Sees Brazil in `Transformation’ as Funds Flock to Currency, Equity Banco Itau Holding Financeira SA’s Roberto Egydio Setubal, head of Brazil’s second-biggest non- government bank, said his nation is in a “transformation” that’s creating the best conditions for business he’s ever seen.
Sao Paulo State Suspends Environmental Permits for Sugar and Ethanol Mills Brazil’s Sao Paulo state suspended environmental licenses for new sugar and ethanol mills while the government assesses the impact of the industry’s expansion on air, water, soil and forests.
Soybeans Rise as Argentine Farmers Extend Strike Over Taxes, Block Exports Soybean futures rallied in Chicago on speculation that farmers in Argentina, the world’s third-largest exporter of the oilseed, will continue a two-month dispute with the government that has disrupted shipments.
Japan’s Economy Grows 3.3%, Faster Than Estimated, Led by Exports to Asia Japan’s economy grew 3.3 percent last quarter, faster than economists estimated, as exports to Asia and emerging markets helped the nation weather the U.S. slowdown.
Gold Rises for Second Day on Demand for Inflation Hedge; Platinum Rallies Gold rose for a second day in London as higher crude-oil prices spurred demand for the metal as a hedge against inflation. Silver and platinum also advanced.
That’s all for now. Have a great weekend.
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