Here's a theme we've been mentioning for a while now. We like to call it the unseen.
As adroitly put in this article from Platt, "while volatility slips in through the back door."
The recent auto sales reports tells you much about humans. Sales were up and so were profits as buyers, given the fall in gasoline prices, shunned the economical for big trucks and SUVs. The backlog of more climate-friendly wheels are clogging car lots like they're a bunch 80 year old coronary arteries.
New vehicles usually come attached to three or five year notes. Where will the price of petrol be in three or five years, who knows? When gas filed tanks at $4 a gallon, how easy was it to unload those huge clunkers. About as easy as it is now for dealers to unload all those lower profit margin gas savers nobody--at least at the moment--basically wants.
One could talk short-sighted here, but no-sighted might be more accurate. Even more appropriate is people are people. To think otherwise is to take your eye off that back door.
http://blogs.platts.com/2015/01/08/oil-future-problems/
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