Will crude oil cause a global recession in 2008?
First and foremost let me say that the price of crude oil is not caused by demand it is caused by speculation, oil traders are simply bidding up the price of crude oil and we are seeing crude oil trading at a price and if that is at least $40.00 to $ 50 dollars too high.
How to Drastically Reduce our Foreign Oil Dependency While Saving You Money at the Pump
Crude oil is pulled from the ground and sent to refineries to create our fuel. Crude oil from the ground has millions of different kinds of molecules. Refining the oil does not remove all of the critical impurities. The sludge and break down of molecules are what significantly cause wear and breakdown of the oil in your engine.
That same crude oil is also used to make tar for the roads. That low-cost conventional oil guarantees profits all across the board. The last thing the dealerships or quick lubes want is a long lasting oil or an oil that will extend the life of an engine or transmission. Stop buying conventional petroleum oil to lubricate your engine, transmission and axles. The next time you are due for an oil change, only buy synthetic oil. Just buy 100% synthetic. If you use 100% synthetics in your entire drive train, synthetic oil can end up costing you nothing. fully synthetic oils are chemically engineered from pure chemicals rather than from crude oil. Fully synthetic oils do not contain that nasty sulfur, nitrogen and other elements that can cause sludge and varnish in your engine that conventional oils do.
Fully synthetic oils also have a much higher flash point and can handle much higher temperatures than conventional oil without breaking down. Fully synthetic oils stay much cleaner and last significantly longer than conventional oils. Unlike conventional oils, fully synthetic oils have uniform molecules which ensure low friction as the lubricant layers slide across each other (which is what you want in your hot running mechanical engine.)
For one, 100% fully synthetic oils can last up to 11 times longer than conventional oil depending on the vehicle, application and fuel type. A small company called Amsoil is the only company that has such long lasting motor oils. This oil is guaranteed in writing.
If fully synthetic oils can last up to 11x longer and can virtually eliminate wear in your drive train, then what are the benefits of using conventional oil?
I was initially getting 22 MPG on the highway with my car with conventional oils. That same $250 is close to what I would pay for a year's worth of oil changes at a quick lube for conventional oil, but with conventional oil, I'd still be getting 22 MPG, not the 4 MPG increase from synthetics.
Those long-term benefits and savings are not thought about when using conventional oil.
Let's look at how much oil is saved on an annual basis. If I drove 1 year on 6 quarts of fully synthetic oil for 24,000 miles, if I would have done it the old way, I would have had to get 8 oil changes and use up 48 quarts of oil to travel the same distance. That's 48 quarts of oil imported from another country. By using the fully synthetic oil, I have saved the country 48 quarts of oil that I did not have to use for the year.
Dollar Index Futures and Correlations to Crude Oil and Gold Futures Trading
Scalpers, Intra-Day, Position and Swing traders alike benefit from the correlations seen between the US Dollar Futures Index (DX) and Commodity Futures such as Gold (GC) and Crude Oil (GC). Let's focus on the correlation to Gold and Crude Oil Futures.
(When the Dollar is rising, Crude Oil and Gold falls)
With the dollar rising, look for high-percentage entries to the short side of Gold or Crude Oil Futures.
(When the Dollar is flat, the Crude Oil and Gold is flat)
Most traders will use the Dollar correlation as a filter because it allows them to avoid high-risk entries on Gold and Crude Oil Futures. Without a trend on Dollar, the Gold and Crude Oil Futures also show flat price action, and tend to reverse their current trends often.