Oil Back to $50 a Barrel

Well, it's been a while since my last post. Oil is at $50 a barrel and looks like it will decline further.

What we have, in my opinion, is a case of demand destruction brought on by world economic recession kickstarted by the subprime mortgage bubble bursting in the United States.

With lower demand for oil, the price has come down.

The big question to ask is if the world is still using 86 million barrels a day. That is the more important question because it suggests that it is supply that is the key factor to world economic success and not price.

I still believe oil will hit $300 within a 2 to 5 years.