In the short term, oil may drop.
A little.
But the world has to figure out what they want to do about China and India.
1/3 of the human beings live there, and they aren't using hardly any oil. They've only begun, recently, to develop their infrastructure. Which needs oil. Roads need oil. Factories need oil. Power plants need oil. New homes need oil. I won't even go near the automobile situation.
I was listening via the web, Frontline Ltd.'s (FRO) last shareholder presentation. They had an interesting graph by country, and the % oil of the market they represent. It was shocking how high the United States was, compared to say,
India.
I'll try and hunt the graph up. But considering the room for growth they have with their infrastructure? The world HAS to figure out, and
extremely quickly what they are going to do about satisfying that appetite. Because it takes about 20 years for newly discovered oil fields to start making a dent.
Edit: I did find this one, which I find interesting:
