This week's chart comes to us from our friend Bud Conrad, Chief Economist of Casey Research.
Bud recently produced a great piece of research for readers of The Casey Report. It's about the long-term picture for oil prices. Bud sees higher oil prices ahead, driven by declining supplies and increasing demand from emerging markets.
For example, have a look at the growth in Chinese oil consumption since 1965. As you can see, consumption growth has far outstripped domestic production, which must be supplemented by imports from places like the Middle East.
China's consumption/production gap is getting wider each year… and helping drive oil prices higher and higher.
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