Sunday, June 08, 2008

Crude Oil Update

Despite the huge run up for crude oil prices - seen in the last ten years (up more then 1000%) there is no sign that the long term top is in. looking at the long term linear and logarithmic charts below you can see that higher highs are certainly possible.

Crude oil long term linear chart

Crude oil long term logarithmic chart

Obviously anything that goes up can go down but the crude oil market enjoys an ever increasing demand , low above ground inventories / consumption ratio and 100's of millions of consumers that are willing to pay increasing prices at the pump. Currently there are no major reports of immediate oil shortage, the price seems to be the major factor which keeps the supply demand balance in check.