We here we are, we hit seventy dollar per barrel oil prices today. Predictable? Indeed, and yes I had been predicting that previously as you know. But it will not stop here as we see Hurricane Season is on its way and if it is anything like the 2005 Atlantic Tropical Hurricane Season, well lets just say it will not be pretty on supply issues, as refining capacity is removed from the flow of Fuel. http://worldthinktank.net/wttbbs/index.php?showtopic=15 Let me tell you how serious this really is and these prices affect everything. For instance the Marine and General Aviation Industries. The cost of shipping freight and Airlines too, but consider the travel industry taking a hit as well. Why is this happening? Well for many reasons and some is the anticipation of knowable future events such as the war in Iran as that radical regime pushes the Western World, while developing nuclear weapons and sponsoring International Terrorism. Indeed International Terrorist threats on oil assets is one reason, weather is another, but also realize other emerging nations need the oil too and they are competing for the supply, obviously this drives up prices you see? As consumers cut back on other purchases to afford their weekly get around fuel, you will see them lessen their retail purchases and this means less will be bought. Less things bought mean less to be made and a manufacturing hit on that sector too. If the US Middle Class fore goes purchases the whole world which exports products to us is also affected you see? Consider all this in 2006. |
