Disliked{quote} i dont think the market cares.. it was 23$ and less before 911.. and since then u.s domestic production is at a 40 year high.. Pennsylvania if it was a single country would be # 3 behind the U.S. and Russia last i heard in ng... whats the new oil price? 23$ +13 year inflation adjustment? a reset seems to be neededIgnored
You are I am sure aware, how much the so called "rest of the World" grew since 2001. What was the total number of cars back then and what it is now? What was the number properties back then and now. How did the social welfare of people change in the past 14 years? Do people consume less? Of course not, the habits of the old World has changed dramatically as well, everyone wants now the second home now, or another car for the wifey or the grand son.
What I want to say is; people now consume more, they can't just cut it back cause the economy is slowing down. The current price actually reflects that the growth will shrink next couple of years however the demand is still there and much more than the levels in 2001.
The rally we have witnessed in the past was the assumption that there would be economic growth on the Eastern side of the World which took commodity prices to record highs. The market is now trying to find its equilibrium but the past price + 13 year inflation is simply not sufficient to determine the price of this core variable.
