hello.... it seems that Oil is anyways doomed to die its death. Reasons are clear .. (a) Oil even if it was available for free, it is widely responsible for damaging the Earth's environment. (b) Greed of the Oil producers kept oil prices artificially high... as a result - world started looking at developing alternate energy sources. Solar energy is now bound to replace Oil in all spheres. (c) Major desert Kingdoms which have been so far manipulating oil prices are now seeing a death of this industry - hence heavily investing in solar power generation - as also trying to divest out of its own oil industry (SAUDI wanting to divest out of SABIC, which was always their cash cow)... (d) capital expenditure in Oil has been replaced by investment in SOLAR POWER systems - solar power production systems capital costs falls down with every passing day... (e) OIL is now doomed... i think the only application oil would have for future is for making of Greases and Lubricants and no more as fuel. (f) MOST of the oil producing countries have got major civil and military unrest.. Civil unrest is often caused because of sinful earnings. Let us not forget : FUNDAMENTALS EVENTUALLY TAKE OVER THE TECHNICALS.
hi... the point here is nothing to do with the technicals. Its about the fundamentals. At the end of the day, anyone who is neither a producer nor a crude consumer - is only a speculator in between, isnt it?? But we all, indirectly, as of today, surely deal with Crude in our daily lives. Solar Energy is finding its way to replace Oil in a major way. Oil - even if it was for free, is on its way out.
max 10-15 years from today. You should ponder over : why SAUDIA wants to suddenly sack of the shares of the closely held SABIC. Saudia knows the future. It knows that Oil is a dying industry. One should consider these fundamentals before going Long in OIl.