Monday, August 22, 2005
Running On Empty
My favorite newspaper, The New York Times, is telling its readers that the world is running out of oil! Above this post you will see the cover of yesterday's The New York Times Magazine. It depicts a fuel gauge on "empty". The cover article by Peter Maass is entitled "The Beginning of the End of Oil". Among other things the article discusses the increasingly popular theory of "peak oil" which predicts a top in world-wide oil production in 2006.
This NYTM cover is solid evidence of overwhelmingly bullish sentiment in the oil market. I think it is telling us that the next big move in crude oil will be downward from here and that the bull market in crude that started from $11 in 1998 is over.
UPDATE: Here is a fisking of this cover story by Freakonomics (Hat Tip: Instapundit)