• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 6 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 22 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 8 hours Why is permian oil "locked in" when refineries abound?
  • 51 mins Saudi Arabia turns to solar
  • 1 min Could Venezuela become a net oil importer?
  • 15 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Teapots Cut U.S. Oil Shipments
  • 10 hours Oil prices going down
  • 11 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 1 day What If Canada Had Wind and Not Oilsands?
  • 24 hours U.S. Withdraws From U.N. Human Rights Council
  • 1 day "The Gasoline Car Is a Car With a Future"
  • 21 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 11 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 12 mins EVs Could Help Coal Demand
Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Oil Isn’t What It Used to Be

Virtually every analyst has been puzzled by the seeming immunity of stock markets to soaring oil prices this year. In fact, stocks and crude have been tracking almost one to one on the upside. The charts below a friend at JP Morgan sent me go a long way towards explaining this apparent dichotomy. The first shows the number of barrels of oil needed to generate a unit of GDP, which has been steady declining for 30 years. The second reveals the percentage of hourly earnings required to buy a gallon of gasoline in the US, which has been mostly flat for three decades, although it has recently started to spike upwards.

The bottom line is that conservation, the roll out of more fuel efficient vehicles and hybrids, and the growth of alternatives, are all having their desired effect. Developed countries are getting six times more GDP growth per unit of oil than in the past, while emerging economies are getting a fourfold improvement. The world is gradually weaning itself off of the oil economy. But the operative word here is “gradually”, and it will probably take another two decades before we can bid farewell to Texas tea, at least for transportation purposes.

Oil Intensity & Gas Prices

By. Mad Hedge Fund Trader




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News