Actually oil is now at $70 because investors (novice) tend to put their money in the at the height of the market, and many are afraid that they are missing the boat (as the DOW approaches 9,500 / S&P 1,000) so they are artificially pushing commodity and stock prices up.... this can be seen as oil is not reponding to basics (last couple months)...
Oil is tied to the dollar, dollar goes up, oil goes up...
dollar goes down oil goes up...
demand goes down oil goes up...
supply goes up oil goes up...
this week has been forcast (by many) to be the height of the current rally.... with August 2007 and September 2008 as guides, we are in for quite a drop.... or at least a ride...
(September and October are historically bad months)
Fibb222 wrote:
Since oil reaching $147 was the cause of this world-wide recession and not the bursting of the housing bubble in the USA, the sooner the EESUs are delivered the better. We can't have stable and sustained economic growth with oil continuing to hold us by the short hairs.
For oil to already be at $70 while we are at the bottom of a major recession shows just how soon demand will again outstrip supply.
PS Saudi Arabia is lying!
"So long as they don't get violent, I want to let everyone say what they wish, for I myself have always said exactly what pleased me..." - Albert Einstein
