Recently the CRB index - an index of 17 commodities - surged to its highest level in 24 years. On the same day, copper reached a 16-year high. Then oil made an attempt at a 24-year high - $55.67 a barrel is the mark, set on October 25, 2004. Oil now stands at around $57/barrel and commodities are likely to tread water for a while, however, make no mistake - the overriding trend - on FUNDAMENTALS - is UP.
And the price of gasoline at the pumps isn’t exactly heading south. For the data, take a look at the Oil and Gas prices. Look out for $60+/barrel in the not distant future.
Justice Litle, reporting in The Daily Reckoning, takes a closer look at some of the longer term influences which will shape the world energy markets in the future:
“China’s oil demand has doubled over the past decade, and the pace is […]