Wednesday, August 26, 2009
Oil is said to be overvalued at $75 by $20
SHOOT: Oil's 65% appreciation is based on the myth of 'recovery'. I see oil, over the medium term, staying where it is and slowly appreciating, but not due to demand or a 'recovery', due to increasing inputs, due to lower EROI and due to depletion. Over the long term it's going to go through the roof, crash, in a series of U's with very flat right-hand side arms.