No longer a credible source regarding this issue.
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Oil Bubble?
Submitted by Aero_70 on Thu, 2008-05-22 15:34.
So... waddaya think |
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FTA:
FTA:
there are few buyers for physical oil cargoes at today's prices, but there are plenty of buyers for pieces of paper linked to the price of oil next month and next year."
Speculators and futures, pfft.
If it is a bubble then we will see the price of a barrel of oil peak (say $200) then plummet rapidly as oil/energy companies go belly up and merge even more (State run energy via a bailout?). Maybe even see oil producing countries loose so much money that the Amirs can no longer afford their jet set lifestyles?
If it's not a bubble and the cost of a barrel of crude just go up, up, up, then everything gets so expensive that the underpinnings of our economy change in ways we never imagined. That is until we figure out how to live without our favorite liquid.
Of course maybe this is just an adjustment to the true value . Sure oil is expensive and the cost of all goods and energy are going up... a gallon of gas is twice as expensive as it was a year ago (almost), but here we are, still trucking along. The market is bearing it...
Did it a 135
look at a chart. It will probably spike again, but I would not want to bet one way or another.
The kicker is that no one really knows, isn't it?
I do wish I knew how to trade oil. I would love to get in on that game but I tried before and it hurt.
"the kicker is that no one
"the kicker is that no one really knows, isn't it?"
Ahh if we all had a crystal ball....
Swarovski taint
Be needin' dem padded shorts for shure.
Every evening on Market
Every evening on Market Sense (NPR) they report the closing price of oil, and everyday they say "hit a new record high".
Futures are a crazy thing. Indyfan brought up a good point about trading prices and market prices.
Tuesday's Wall Street
Tuesday's Wall Street Journal featured a front page feature explaining that the auto manufacturers had built a bubble in their production capabilities. This sector is obviously intimately related to oil.
The recent interest in commodities by fund investors has made it difficult for those markets to function properly, since speculation (investors) and the cost of doing business (markets) serve different purposes and are not always compatible.