Can’t get enough oil (NYSE:USO)?
No worries. We’ve got you covered.
Austria’s Erste Group has published a big “special report” on the oil industry, complete with some long-term charts about the state of the market.
Let’s just jump right in.
Since the start of QE I (up until very recently), oil and stocks have been very closely correlated
Meanwhile, oil prices are severely lagging food prices
You can see easily how the Mideast crisis blew out the spread between WTI and Brent Crude
A massive divergence is brewing between the Baltic Dry Index and oil
Oil’s burden of GDP is nearing old highs
To keep up with demand, a lot is resting on future oil fields.
Here’s a look at non-OPEC production changes
The peak of discovery was in the 1960s
Google trends shows that the oil spike hasn’t capture people’s imagination like it did in the last time
The long term trend of stocks priced in oil is brutal
And even gold isn’t keeping up with oil
And of course, personal income has badly lagged the cost of crude