Sunday, July 5, 2009

Volatile Swings for Price of Oil About to Hobble Speculators

It's back!
Volatile Swings for Price of Oil Hobble Industry

The extreme volatility that has gripped oil markets for the last 18 months has shown no signs of slowing down, with oil prices more than doubling since the beginning of the year despite an exceptionally weak economy.
Some like to blame Goldman Sachs. (I am not a fan, but the Rolling Stone article reaks of Protocols paranoia.) Dumber people still believe in peak oil. The reality is nothing more than speculation, and a bunch of dumbasses are about to get burned.

Hey, don't get wrong. From a selfish "I wish my house could appreciate like crazy" standpoint, high oil prices are great. But the facts are we are awash in crude stockpiles that are still building.

2 comments:

Anonymous said...

It's not about fundamentals, it is about trust( snicker ) in Federal Reserve, LLC paper. I.E, dollars.

There is lots of cash still sloshing around. And, with expected Bush/Obama/Congress printing more, smart traders want out of cash, into something liquid.
Like Oil.


Billionaire Jim Rodgers has been long on commodities for that reason for a few years now.

We haven't seen a world wide devaluation of paper currency. The leftist, big government, big finance types coupled with academic financial theorists are doing all they can to see to a world wide Wiemar collapse.

This isn't your father's Depression.

Funny Circus Bears said...

You mean peak oil isn't real?