Oil logic

[JamesWhite]

I’m a professor in the University of Chicago at the Department of Economics and I’ve been dealing with oil prices of late. The conclusion I came to is that oil prices will keep on rising. Here’s my logic:
We know pretty well that oil prices can surge to a record high after a steady and gradual increase and then they can unexpectedly tumble. This is what we call a cycle, which exists everywhere. Now the prices are on a gradual but upward spiral. It’s a natural process, there is every prerequisite for it:
1. economic recovery is underway, boosting oil demand particularly in China.
2. there’s an unstable situation in Venezuela, Iraq, Iran and Nigeria with cumulative oil production accounting for more than a third of the overall OPEC production. This decreases oil supply.
3. non-OPEC countries cannot cap the rising demand if OPEC doesn’t increase production, which is unlikely in the near future.
4. crude oil in US storage unexpectedly fell by 8.4 million barrels
Given all the factors above, the most logically correct decision is to buy oil and increase our stockpiles while the prices are yet low.

[Probafix]

Great.. i think whenever dollar up then crude oil fell down and vice - versa.