Wednesday, April 19, 2006

Another Reason Why Oil Prices Won't Decline

As the leader of the fastest growing economy on the planet visits the Empire, it might be worth a look to consider just how much oil China needs to sustain its riotous growth. Here's a nice chart that gives anyone alert to the problem the shivers. You read it here first: global competition for oil will be a new experience for the Empire and its fuelish citizens, who consider the right to pilot outlandishly appointed land yachts a constitutional birthright. Here's an investment to back it up: the first exchange traded fund based on the price of oil opened this week. (BTW, the analysis in the article linked is flawed: oil is "coming off a peak?" Don't think so.)

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