Back in Jun when oil was well above $100, I predicted that oil would plunge into $80s soon:
Oil may be in a big trouble
Well, oil hit $79 today, a quite bearish run since I made the call, isn't it?
But I think oil's good days will come back soon.
There are many fundamental factors involved but I got my first hand experience with one factor last week that made
me believe more so about the tailwind for oil: the badly shaped supply and demand curve!
We just came back from Europe. When we were in Paris, it was still a bit hot and humid with the day time temperature
around 85-90 F. Here is the terrible experience I got: there was no air-condition running in the Paris metro. Initially I was
a bit puzzled why there was no A/C. Then I suddenly realized: to save energy due to the shortage of oil and gas!
Apparently the energy supply shortage in Europe is so severe that has impacted people's day life! As such, I don't think
oil will continue to go down much from here. Rather with the winter is quickly coming, oil and gas will re-surge and oil may
go back into $100 again!
Except the unpleasant metro experience in Paris, we had really good time visiting various areas in Central Europe:
We are mostly impressed by the
Cube Houses in Rotterdam of Netherlands.
We also visited historical towns including Netherlands
Amsterdam
De Haar Castle,
Fairyland Geithoorn
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Belgium Ghent
and Bruges.
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