Proactive Structural Dynamic Oil Price Simulation :Oil price peaking out at 115 , what’s next ?
Fed's 300 points rate cuts and 200 billion cash injection and economic stimulus package, rate cuts, push oil price to 95-129  in 2008 summer peaking demand 
中文 Chinese

The  what
, why, how and timing of price mechanism movement see  www.blogs.wsj.com energy blog  Proactive Recession Strategy
 
by  OSA   pioneer  Dr. Warren Huang wh3928@yahoo.com

5 Day Oil 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 110
 . 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 final 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 300 points rate cuts, economic stimulus package, 200 billion cash injection led to Yen plunge to 95-100-105, and EURO to 1.55-1.66 ,driving up consumer,  business demand and oil price to 90- 125 , supporting  spring summer driving peak demand in 2008 through economic stimulus, tax cuts .

Comment by Warren Huang -Wall Street Journal Market Beat May 6, 2008  and  osaglobalstrategicmanagement.com/ blog1 at 6:25 pm

The market is repeating its last August speculative mood, chasing on banking, high tech stocks push Dow to 14200 new high, this time over 13000, trying to break downtrend., despite housing markets slump, soaring oil, commodities prices, job cuts and banking, finance mounting loss in write down.
The market optimism built on shaking ground, betting on housing, banking, high tech sectors rebound, will lead to another trillion dollar loss.
Goldman’s prediction of 200 dollar oil price is against market supply demand fundamental mechanism. Oil price bubble will burst before 200.consumers just can not afford
to pay for that price. We will have long, deep inflationary recession with us, even stimulus package rate cuts will not be able to achieve sustainable recovery this year. We have already seen the worst of dollar weakness at almost the end of current rate cuts cycle, the soaring oil price will push inflation higher, all will give support to US dollar.
Gasoline and heating oil are still the major demand driving force for oil price. It is the spring, summer gasoline demand drive the oil price from 80 to 120.
stronger dollar supported by inflation fighting will drag oil price lower, current oil price spike is expectation of stimulus package boost jet fuel and gasoline demand this summer.
We may see oil price breakout to 130, not much beyond that. details on www.osawh.com/Globaloiln.htm www.osawh.com/oilpetpri.html
www.osawh.coom/currency.html

 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- 115 , 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