Oil Reserves and pricing.

US investor Jim Rogers has said that the decline in known oil reserves across the world is the main reason behind the skyrocketing oil prices that have already topped 145 US dollars a barrel.
"Nobody has discovered any major oil fields in over 40 years, while known oil reserves are declining amid a situation that the demand is boiling," he said, adding that oil prices will no doubt go higher unless somebody finds a lot of oil quickly
"Nearly every oil company has declining oil reserves, nearly every oil country in the world has declining oil reserves," he said, noting that "the known oil reserve will not last 100 years."
Rogers said that he was "not good at short-term trading" and predicting the price trend in a short period, but it is obvious that oil prices "will maintain an upward trend over a longer period" because the conflict between oil supply and demand is a big problem.
Rogers blamed the US government for driving down the value of the dollar, saying that the US government should do something about the currency.
He said he has been "very vocal" about the US dollar policy and criticized its "mistakes" as having been printing a lot of money since last August and lowering interest rates dramatically.
All these factors have helped drive up the prices of the dollar- dominated crude oil, he said.
Noting that the sharp rise in oil prices will change people's lives, he said they have to change their lives "accordingly."
Rogers highly recommended the use of nuclear fuel, saying that it is cheaper and cleaner than anything else, adding "if you are careful with it, it is safe."
In September 2007, Rogers sold his mansion in New York City for about 15 million dollars and moved to Singapore, mainly due to his belief that this is a ground-breaking time for investment potential in Asian markets.
Tracking the Dow on Tuesday,08/07/08


9:30am--Small gap down.
It's Miss Fannie Mae & Mr Freddie MAC pulling the early breaks.Office Depot (ODP) shares fell sharply after the company reported a nearly 10% drop in North American retail same-store sales due to additional pressure from weakening business conditions in the second quarter.
10:30am--Early high followed gap cover.Doji spin at the opening candlestick shadow.
The National Association of Realtors' pending home sales index dropped 4.7% to 84.7 in May after a 6.3% surge to 88.9 in April, which was the biggest monthly increase since December, 2001.Noticed a bullish harami at this juncture,open a buy-long position.
11:30am--Bullish spin inside a bullish candlestick now at session high.
The dollar continued to gain strength and amid a broader selloff in commodities on concerns that worldwide economic slowing would continue to erode demand for oil and other fuels.
August WTI crude oil futures dropped $5.38 to settle at $136.04 a barrel.
12:30pm--Close morning session position,saw a shooting star.
Let's wait for any comments that use to appear at around 2:00 pm.
1:30pm--Main candlestick is a long white candle.
Looks risky to short the index despite the spinning graveyard dojis seen.
2:30pm--Bullish Harami.
Treasury Secretary Paulson said that while he expects there to be many more foreclosures before the housing slump ends, the 21.6% decline in inventories of new single-family homes since the 2006 peak shows the housing market is well into an adjustment period.BUY position.
3:30pm--Graveyard Doji & Hangman seen.
Close sell position. Richmond Fed President Jeffrey Lacker, a well known hawk, in which he said it makes sense to start raising interest rates as growth risks fade, as the Fed needs to keep on top of risks associated with persistent high inflation. He said he doesn't see a risk of recession in the recent economic data and noted that consumer spending has been supported by the tax rebates, while the weak dollar has helped exports.
4:00pm--The Evening Stars.
Looks like we're in a bull trap.

Tuesday's candlestick only light up half-heartedly of Wed 2 upper shadow.The light is still very dim.


Recovery in housing is still very slow and sluggish, which may not have hit bottom as cautioned by Richmond Fed President.