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-----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Wed, 29 Dec 2010 22:48:35 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] Why is our gas so expensive? World is facing another Global Crisis Why is our gas so expensive? World is facing another Global Crisis Source: http://marketpin.blogspot.com The already fragile economic recovery would be vulnerable to rising oil prices. Where will the price of a barrel go in 2011? Analysts argue both sides The price of oil has been hovering around 90 dollars a barrel for quite some time now, but get ready, because it is going to move significantly higher. Oil prices have already risen about 10 percent over the past month, and many believe that this could very well be the start of a new trend. Lawrence Eagles, a top analyst at JP Morgan, recently made headlines across the globe when he stated that oil could hit 100 dollars a barrel "much sooner than we expect". Not only that, but a number of top OPEC officials are also publicly discussing the possibility of 100 dollar oil. But just because a few people are talking about it does not mean that it is going to happen. So are there any other reasons why we should anticipate a significant increase in the price of oil? The argument is that oil stocks have underperformed both many other industries as well as the rally in oil prices. Thus they should be buoyed by oil's strength in the upcoming quarters while stocks hurt by rising oil prices will start to feel the impact of them, particularly retail. Goldman : We have long been overweight the oil sector in our portfolio. But increasing oil prices should start to have negative effects on other sectors as oil-related costs Retail is among the sectors that could be affected the most. This comes at a time when other potential headwinds could weigh on the retail sector, especially general retailers Higher oil prices can of course negatively affect some sectors. Retail is one of them. There is the direct effect of higher transport, energy and packaging costs and the indirect effect, as consumers have to pay more for gasoline and hence have less to spend on other items. Why is our gas so expensive? World is facing another global crisis Well, yes there is. *The Decline Of The U.S. Dollar Since August 27th, the U.S. dollar has declined approximately 4.8% against the currencies of major U.S. trading partners. Unfortunately, there seems to be every indication that the dollar is going to continue to decline. As the U.S. dollar continues to display weakness, just about everything priced in dollars (including oil) is going to continue to rise. *The Threat Of Quantitative Easing By The Federal Reserve For weeks, top Federal Reserve officials have been making public statements about the need for more quantitative easing. If the Fed does initiate a significant program of quantitative easing in the coming months, that is going to put even more downward pressure on the U.S. dollar and even more upward pressure on the price of oil. *Other Commodities Have Been Skyrocketing Over recent weeks, the prices of a wide array of key commodities have been absolutely skyrocketing. As I noted in a previous article, not only has the price of gold been setting records, the truth is that almost every major commodity has been spiking. In a recent column entitled "An Inflationary Cocktail In The Making", Richard Benson noted some of the commodity price increases that he has been tracking this year.... -Agricultural Raw Materials: 24% -Industrial Inputs Index: 25% -Metals Price Index: 26% -Coffee: 45% -Barley: 32% -Oranges: 35% -Beef: 23% -Pork: 68% -Salmon: 30% -Sugar: 24% -Wool: 20% -Cotton: 40% -Palm Oil: 26% -Hides: 25% -Rubber: 62% -Iron Ore: 103% The increase in the price of oil is just part of a larger trend of soaring commodity prices. As long as this trend in commodity prices continues it is unlikely that the price of oil will go down. The development is significant. Some economists believe that if prices rise much more, especially past $100, it will likely dampen America's already slow economic recovery. As the price of crude rises, so does the price of gasoline, and a higher price at the pump will hurt consumer spending overall. So where will oil go in 2011? Will it surpass the psychologically significant $100 mark at a time when demand for oil from most emerging economies is expected to rise? Or will it retreat as China tries to rein in growth amid worries over inflation? Here's a look at the bull and bear arguments for the black gold next year. A growing number of traders and analysts think prices for crude oil will stay relatively high – with some predicting it could top $100 a barrel sometime next year. A few factors will probably support prices in 2011, according to analysts at JPMorgan Chase (JPM) and Bank of America Merrill Lynch (BAC). The banks forecast that prices could climb past $100 a barrel next year as central bankers pump cash to help accelerate economic growth. The U.S. Federal Reserve's recent decision to inject up to $600 billion into the economy through a bond-purchasing program is expected to weaken the U.S. Dollar. The greenback has historically influenced the price of oil and other commodities, including gold and base metals that are mostly priced in the currency. So when the value of the dollar falls typically in tandem with interest rates, that tends to push up the price of commodities, including oil, as investor search for higher returns. Indeed, the dollar has generally been weakening for some time. It's anyone's guess how the value of the greenback might fair next year, especially as the ongoing debt crisis in parts of Europe has put the value of the euro relative to the dollar on a very volatile ride. Needless to say, growth in emerging markets might also help prices next year -- helping reduce stockpiles of crude oil. Though forecasts at UBS do not predict prices surging anywhere past $100 a barrel, the bank nevertheless characterizes its prediction as "bullish," forecasting that prices could hover around $80 a barrel next year. Source: http://marketpin.blogspot.com ------------------------------------ ## StockForex ## _________________ ::Forum:: All about Forex and Stock Trading ; all currency pairs. All Major World Indices, Asian Stock Index. and Individual/single stock. We're not goin' anywhere Well, it's all right here. Enjoy it !! :) _________________ http://finance.groups.yahoo.com/group/StockForex Yahoo! Groups Links ------------------------------------ Kunjungi situs http://www.info-saham.com untuk informasi seputar saham. SEMUA POSTING DI MILIS INI TANGGUNG JAWAB PENGIRIM EMAIL DAN BUKAN ADMIN MILIS. SEMUA POSTING DI MILIS INI BUKAN UNTUK MENGAJAK MEMBELI ATAU MENJUAL EFEK. SETIAP KEPUTUSAN INVESTASI MENJADI TANGGUNG JAWAB PIHAK PEMILIK INVESTASI ATAU PEMILIK MODAL. [email protected] untuk berhenti dari milis saham [email protected] untuk bergabung ke milis saham Yahoo! 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