glutton for punishment?, page-15

energy near its peak? ds, you said "I still have my overriding view that energy is near a peak so don't want a big exposure - more little trades from now on."

I'm interested on what you are basing your view on?

For example, this article:
http://www.kansas.com/mld/kansas/news/world/11275669.htm
is spot on.

As long as China and the US economies keep growing, the demand-side will not be addressed.
If cars in China will multiply 12 times... the demand for oil must increase unless they are using flintstones pedal power cars. Furthermore, their industries/electricity generation will require more oil.

So let's look at the supply-side.
http://www.economist.com/business/displayStory.cfm?story_id=2705562

So the Saudis reckon they can increase to 10bpd output "rapidly". Well they might be able to, but then is there any spare capacity left (assuming there was one to begin with)? I doubt there is any real spare world capacity left. The Saudis could be lying for all we know.

Any disruption and you will soon see the truth on this fictious capacity.