I am not an oil analyst beyond just watching the price and the tanking dollar. However I often wondering how hypersensitive oil is. Seriously, I read the news and it's not stuff like;
"Oil refineries blow up in Saudi Arabia, oil jumps $5 a barrel."
It's;
"Potential terrorist attack in Iraq trigger supply concerns; oil up $3 a barrel."
"Oil traders in general poopy mood; oil up $175 a barrel."
"German eats burrito then farts in a westernly direction; oil jumps $6 a barrel on global warming concerns."
"Somebody, somewhere did something and sneezed; threatens inventory levels; oil gains $5.19."
So for all you oil firms, oil traders and OPEC nations, save up that oil money. Not going to last forever.
3 comments:
Some talking head on a new channel was saying precisely that. Guy seemed to an "expert in oil economics" and went on about supply and demand and speculation for a while.
Finally they asked him what the the fundamentals that had driven oil past $X/barrrel. (where X is high but not 100+ per barrel)
He paused and said "I have no clue, there is no logical economic reason, but there is a lot of pure speculation, some people are making a alot of money right now and some people are going to lose a lot when it drops down to more economically normal levels"
And about freedom and oil... this is an interesting graph:
http://www.foreignpolicy.com/story/cms.php?story_id=3426&page=0
This is also another interesting graph.
http://cryptogon.com/images/oilgold.gif
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