Quote:
Originally Posted by Defiance Inc
"If you honestly think this is just an investment bubble and oil iwould go back down to $10-$20 bbl if only investors would stop using it as a hedge agest the USD then you are more than delusional."
Then explain how an investigation caused the prices to drop
the same day it was announced? That doesn't have anything to do
with the dollar or demand. Or how this recent surge was because
the Central Bank of Europe said they were thinking of raising rates
to strengthen the Euro? Shit, just "mentioning" something causes
volatile activity! Sounds like speculation to me... call me delusional.
"The market can stay irrational far longer than you or I can stay solvent"
And they won't be happy till we're all in the poor house...
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You're missing the forest for the trees. Yes there is speculation. I never said there wasn't, just that it's riding on the back of the fundamentals. POO was $20 in early '02, it's not just speculation that has added $120 to that in the last six years. Will oil "crash" to "only" $80-$100 sooner or later at least temporarily? Most likely. The salient thing to understand is that whether $80 or $138 we're entering a new era of higher prices and we're not going to return to the free and easy 90's gas use for any extended period of time. It's delusional to think that it's all just speculation and if only those wall street types would get regulated.. or back off, everything would be rose-coloured again... that all you need to do is sit back and wait for the bubble to burst and you can get back in your hummer.
Oil should be $100 anyway. I hope a small speculators premium stays in the price. There needs to be incentive to develop alternative energy and this will never happen with POO @$50