Black Gold - Rise Of China
(Hassan Mahmood)
I simply believe demand for oil will push oil
prices higher, making the cost of gas for our homes and cars, and
the cost of doing business, more expensive.
Why, after a time period of relatively weak oil prices (1986-2000),
did oil prices start to rise rapidly? Different analysts will provide
different answers (everything from supply problems from OPEC
to national disasters) on why oil prices have risen. However, in
respect to use, the United States' demand for oil has not changed
much over the past several years.
As I have written before, it's my belief that increasing demand for
crude oil from China and India are causing oil prices to run up. In
fact, there's absolute proof of this in the demand and use numbers
for oil.
China is now importing in excess of three million barrels of oil a
day--a huge jump of 70% from a year ago. And many other Asian
countries have also increased their demand. South Korea's oil
imports jumped 19% this January from January, 2005.
As the economies of China and the largest Asian countries
continue to growth rapidly (we are talking GDP of 7% to 10% in
China this year), oil prices will continue to rise. Technically, from
looking at the charts, I believe oil prices have formed a strong base
and that the oil prices will soon test their 2005 record high. I
really would not be surprised to see crude oil prices jump above
$100 a barrel as China's economic train keeps motoring along.
(This past January, China imported the equivalent of one-third the
oil the United States uses in month. Only a few short years ago
China was not even consuming one-tenth the oil the U.S.
consumes).
So, where do oil prices go from here? In my opinion, they move
much higher. For investors, the shares of quality, senior oil
producers are worth a serious look.
Resumos Relacionados
- Gold Is Old
- Oil,politics,poverty And The Planet
- The Journal Of Econometric Study Of Northeast Asia (jesna)
- The Journal Of Econometric Study Of Northeast Asia (jesna)
- China, Inc.
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