The Glass is Half -full-the tanks are more than half empty

the chart to the left is a step back to look at the larger picture lest anyone think we have already rallied and gone up too much

The dollar matters only when it is weak-Inventories only matter  when they show a draw

The myopic near-term supply does not matter- The market is a forward looking indicator  and perhaps a little less so for Oil not so much that it cannot grasp the concept that is right before all of our eyes. We as a nation for that matter as a species currently depend on oil. 

Discoveries are being out-paced by usage and we are in the tail end of a global recession.

China is coming in masse- they are a ravenous bunch there was some manufacturing data out today re-cementing the notion they will come out first and stronger than ever. Oil is finite

hence something that becomes rare and is in demand simply put becomes more expensive.

The recession has also set up scenarios which have caused some production cuts which will cause an even greater demand squeeze. 

There are still a host of problems afoot and the administrations printing press and other monetary policy's harken us back to the 70's and stagflation but even then oil prices spiked.Does anyone remember the odd and even numbered license plate days when only certain cars were allowed to get gas and the incredibly insanely long of automobiles lines up to get the rationed amount -ah but I digress. The reason for the gas crisis then was an OPEC embargo this time -much scarier we may actually run out at some point in the future.

All this being said you might see prices in the years to come in excess of $300 a barrel or more

I tell you what if It is gonna cost me sextuple what it costs me today I had better have a very nice bank account.

I believe we shall see 75 before too long. I am buying dips in the 70.5x area we  not get another for a while in which case I will adjust higher. Long term and I hope anyone who reads me understands this. I felt a correction was eminently possible as I got a little too close to the data I was scouring to clearly see the bigger picture-before days out I had reversed this idea however and we have been legging most of our trades from the long side since the 67.8 bottom call intraday monday. If I  had enough money I would love to just  buy and hold until it broke a hundred or more which it definitely will some day brushing the occasional correction off my shoulders.  I am forced to trade which beats ditch digging I am told and 

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