The "China Syndrome" will underpin high future energy prices.
The long term trend for energy is up.
"China syndrome. They continue to expand rapidly and their demand for energy is fierce. And it's not just their industrial usage that the energy markets are taking note of. They have a huge middle class emerging and that will take energy to maintain. A big winner with China's emerging middle class is Toyota. They have invested $461.0 million in a 50/50 joint venture with China Guangzhou Automobile according to the Financial Times. This is the latest deal with auto manufacturers as they come to understand their growth will come from the largest demand sector and that is China. And as goes cars so goes energy demand. The magnitude of China and their exploding middle class will have long term bullish implications for energy for years to come." (From Alaron Report)
