Friday, December 17, 2010

Cal Beach Pundit on oil prices

A good read. I stole the Gold/Oil chart from him.
 Barrels per oz of the barbaric relic

Like me, he sees a mix of better efficiency going on and continued adjustment in oil flows.  Unlike me he is a bit optimistic that efficiency dominates.  I think producer efficiency is not gaining as fast a consumer efficiency.  Consumer have two or three different adjustments they can make, producers generally have to wait for innovation.

Gold is not overpriced, according to oil.

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