Rebound in Oil Prices Likely in August 2012

Chart pattern for crude oil seem to indicate rebound in prices coming soon. On daily chart it seems a right shoulder is going to form or is going to form a double bottom.

• Cheap oil era is over as drilling in deepwaters for oil is desperate. (Deepwater Horizon oil spill disaster)
• Oil is transacted in US$. As USA prints more & more US$, prices would invariably rise.
• Massive energy demand especially by China & India

"Neptune Orient Lines said the poorer performance was due to high fuel costs & low freight rates in container shipping."

I wrote in just earlier blogpost about the desperation of NOL selling its HQ building & axeing staff in bid to stem the bleeding after 5 qtrs of losses.

High energy costs have resulted in recessions as evidenced in the 70s. This ought to be a piece of good news considering more & more sinkies are displaced from their jobs by flood of generally cheaper foreigners. When more sinkies are plunged into dire states as companies axed generally more expensive sinkies to stay afloat, sinkies would be 'highly motivated' to vote the incumbent ruling party out of their 2/3 parliamentary majority.

Property market crash would also be a bonanza as more sinkies are laid off & have difficulty servicing their ludicrous mortgage loans.

Oil prices are trending higher over long term despite fluctuations while on the way up.