We are repeating 2007 this summer, as tax cuts, QE2 and prolonged Libya turmoil, will push oil prices to 120 and commodity to record,   Oil , commodity price bubble burst coupled with double dip housing and economic inflationary recession
QE1 in 2008 and current and QE2 excessive money supply and rate cuts led to oil and commodity prices bubbles boom and bust, and are inflationary while housing prices continue to slump facing double dip, while economy went into double dip inflationary recession
O
il price peaking out at 147  in summer 2008, due to QE1 excessive  money supply  growth ,and rate cuts, 
: repeating oil price plunged from 147 July 2008 pushed CPI inflation to 5.9 %, , bubble burst, as oil price plunged from 147 to 33 in March 2009, as economy suffered -6.1 % recession.  repeating 2003- 2004 oil price doubled from 19 to 38 ,inflation doubled from 1.2 to 3.1 %, housing bubble start to follow oil prices bubble to form
F
ed's  325 points rate cuts
and stimulus package  and QE1 push oil price to 110- 145  in   2008 summer  facing bust, bubble burst and economic double dip recession in 2009 中文 Chinese
The  what, why, how and timing of monetary economic, fiscal policy impact on oil , commodity price bubble boom and bust mechanism movement 
 Oil prices doubled from 55 in 2007 to 2008 summer of 147 as Fed aggressive cut rates and money supply soared from 5 % to 10 % during 2007 -2008 in QE1  oil bubble burst in 2009 plunge to 33 , and triple to 90 as money supply growth excessive 10 % followed by economic recession.
Oil prices doubled in 2010 QE2 , as 600 billion cash injection , designed to drive up oil and commodities, stock prices by 30 %, drive 10 yr bond  rate down  1 % ( to support CPI  from 1.6 %  and housing prices , actually rate up from 2.4 to 3.6 %  money supply growth from 3 to 4.3   %, to push oil price over 100, Continued Lybya and Mideast turmoil  with consumer supported by tax rebate spending and QE2 will drive oil prices to 120 level ( money supply growth will be explode to 5.1 %) in summer peak demand , while any peace settlement before the summer will drag oil prices to 80- 95 level due to China, Asian , ECB, UK credit tightening in summer peak demand
 gold, silver, cotton, corn, soybean, up 30 %- 100 %,  repeating 2003 and 2008 while housing prices making new low Jan 2011.  with durable goods order exclude aircraft drop 12 % soaring jobless rate and food, energy  inflation will lead to repeat 1980 style economy double inflationary recession

by  OSA   pioneer  Dr. Warren Huang wh3928@yahoo.com

    • comment to WSJ economic blog Mar. 1, 2011
      QE1 and QE2 excessive money Supply and rate cuts led to oil and commodity prices bubbles boom and bust, while housing prices continue to slump facing double dip, while economy
      Oil price peaking out at 146 in 2008, and 103 in 2011 what’s next ?
      Fed’s rate cuts and stimulus package and QE1 push oil price to 110- 145 in 2008 summer facing bust, bubble burst and economic double dip recession in 2009
      The  what, why, how and timing of monetary economic, fiscal policy impact on oil , commodity price bubble boom and bust mechanism movement
      Oil prices doubled from 55 in 2007 to 2008 summer of 147 as Fed aggressive cut rates and money supply soared from 5 % to 10 % during 2007 -2008 in QE1 oil bubble burst in 2009 plunge to 33 , and triple to 90 as money supply growth excessive 10 % followed by economic recession.
      Oil prices doubled in 2010 QE2 , as 600 billion cash injection , designed to drive up oil and commodities, stock prices by 30 %, drive 10 yr bond rate down 1 % ( to support CPI and housing prices , actually it up from 2.4 to 3.6 % money supply growth from 3 to 4.3 %, to push oil price over 100, gold, silver, cotton, corn, soybean, up 30 %- 100 %, while housing prices making new low Jan 2011. soaring jobless rate and food, energy inflation will face risk repeat 1980 style economy double inflationary recession


5 Day strategic investment workshop : Global Interest rate, Dollar, Oil, Gold, Metals Stock Indices,  and Housing,  Stocks  Bubbles
 Dr. Warren Huang  who pioneered proactive structural demand side oil price mechanism simulation on US Oil & Gas Journal 1983,  circulated  million copies to 80 countries, accurately predicted oil price from 9 to  100
 . He predicted 2005 on China
Oil Markets Conference workshop, Beijin
to multinational oil, QFII CEO, executives that oil prices soared to 80 , due to increasing demand from China/US   global housing, auto, construction materials and transportation, dragged by  US housing market weakness, oil price will be supported by second leg of dollar plunge against Yen, and inflation, seasonal demand in gasoline, heating oil and global housing, constructional materials, metals energy consumption. it peaking out summer gasoline demand at  80, Fed 325 points rate cut, led to Yen plunge to 95-105, and EURO to 1.55-1.65 , driving oil price to 110- 130 , supporting winter heating oil demand season begin Oct- Nov , and  in cold winter,  and boosted spring summer driving peak demand in 2008 through economic stimulus, tax cuts


 Predicted by OSA pioneer Comment by Warren Huang Wall Street Journal Market Beat Blog- March 10, 2008 at 10:10 pm

From my pioneering proactive structural demand side oil price mechanism simulation on US Oil & Gas Journal 1983,  circulated  million copies to 80 countries, I accurately predicted oil price from 9 to 100
I predicted 2005 on China Oil Markets Conference workshop, Beijin to multinational oil, QFII CEO, executives that oil prices soared to 80 , due to increasing demand from China/US   global housing, auto, construction materials and transportation, despite dragged by  US housing market weakness, oil price will be supported by second leg of dollar plunge against Yen, and inflation, seasonal demand in gasoline, heating oil and global housing, constructional materials, metals energy consumption. it peaking out last summer gasoline demand at 80, Fed 225 points rate cut, led to Yen plunge to 100-105, and EURO to 1.55 , driving oil price to 90- 110 , supporting winter heating oil demand season begin Oct- Nov , and in cold winter, and boosted spring summer driving peak demand in 2008 through economic stimulus, tax cuts  
 Comment by Warren Huang  Wall Street energy Blog- September 18, 2007 at 2:57 pm

Hedge fund can not run against the fundamental supply , demand of oil upstream and downstream., they suffered trillion dollar loss by betting on the wrong side of investment.
Based on my 40 years experiences with US major oil and China, US oil exploration, production, refining, marketing, investment
I predicted in 2005 on China Oil Market conference that oil price will be soared from 55 to 80 in summer 2006- 2007, due to Soaring China, US, global housing price bubble demand for energy intensive construction material and consumer demand for fuel, gasoline. while refinery facing bottleneck, above 90 % capacity, crude oil amount to 90 % of refinery cost, they are reluctant to produce fuel at current gasoline price, that is why gasoline inventory is low.
It will take time for China
alternative energy to play any significant contribution.
oil price will have support at 60,even in next year US recession, due to China, and global housing market demand
and weak dollar,
details can be found on www.osawh.com/oilpetpri.htm

My crude oil price tracking last 20 years and forecasted closely related gasoline demand, price in summer and heating oil demand, prices in winter which tied into consumer, business demand, finally control by monetary policy interest rates, currency.
This relationship forecast on the blog in July that oil price peaking out at 80 in summer 2007, and traded between 60- 80 extended into next year, supported by falling dollar and any rate cuts to stimulated the consumer, business demand.
recent Benanke, Bush statement, in any rate cuts to stimulate the housing demand, lead to oil speculator drive up gasoline, heating oil prices and further supported by dollar plunged from 122 to 115 Yen.details can be found on

 

 Do not miss again on book his 2007 -2008 5-day US/China macroeconomic control, currency, oil, commodities, bond, stocks futures, derivatives investment strategy workshops

Dr. Huang pioneered
proactive, structural oil, energy, downstream products market forces demand and  prices mechanism
Operations Simulation Analysis (OSA), patented, published on US Oil& Gas Journal 1983, Hydrocarbon Processing information systems handbook 1991-2005, with millions copies circulated to 78 countries oil executives. He developed, implemented  hundreds simulators while he was senior analyst for US Mobil, AMOCO, Phillips Petroleum headquarters global strategic management and government energy consultant  for Taiwan Chinese Petroleum, China Petrochemical global investment, market pricing strategy and China SINOPEC investment, supply chain, refining strategy
He wrote hundred articles on Taiwan, China daily newspaper, investment journals
an
predicted month ahead of the energy crisis, oil prices from 8 to 80 since 1980, and served as
lectured to China, Taiwan, US 15 cities 30 million TV, radio, institutional, HNW investors and keynote speaker to hundreds global  Chemical Engineering, oil, OPEC petroleum ministers  conferences, workshop executives workshops

Global Oil and downstream demand, pricing markets mechanism OSA
 
provide that what, why, how and timing of last 20 years emerging market trend of price movement

These oil markets prices mechanism simulators,
 integrating macroeconomic inflation, financial economic interest rates, currency and  industrial economic oil prices downstream seasonal demand and prices mechanism, tracking forecast last 20 years daily global oil, downstream prices with average error below 1.5 % , correlation constant over 0.95
US Fed  and global  central banks excessive rates and tax cuts  since 2002 leading to China, US, global energy intensive housing , constructional  material and auto industries demand pushed oil prices from 16 to 80
since 2001, predicted by OSA pioneer Dr. Warren Huang in his Beijing oil markets conferences lectures and workshops to hundreds global multinational oil, QFII CEO, senior executives in 2001, 2003, 2005
 
Current supply side oil price forecast, speculate on the OPEC production and global downstream refinery operating capacity, inventory data and unreliable  government demand forecast betting on the wrong direction of price movement.

please send your comment to Dr. Warren Huang  wh3928@yahoo.com