China and other parts of the developing world may be in the process of changing the dynamics of the oil market. In the last 3 months, China alone, has put one million new automobiles on the road per an article I read last night. The demographics of the world automotive industry and therefore, the dynamics of oil consumption, are changing towards the developing world. As this trend continues to strengthen and if and when the West begins to recover from our flirtation with economic depression, and in conjunction with all of the shut in petroleum production, we will face shortages of petroleum. And such has for all time been the focal point for exponentially rapid price increases.

This is where the danger lies in my opinion. The developed economies of the West at this time of significant economic stress, will find significantly higher prices for oil might be the "straw that breaks the camels back". This may well end up being a foot race between the inflation of higher commodity prices, including oil and the deflationary impact caused by collapsing economies in the West as rapidl increases in oil prices oil becomes the final bubble to pop. Just like the credit and debt bubbles which preceded it. Between the East and West, there is not much question which parts of the world are better prepared to deal with such a situation!

Brian