Seriously sick of the media blitz on it. It will correct and only correct healthily when the dumb money is done trying to short every top until they take the losses. Partially the reason this is at $132. How many people think have been wiped out shorting this since $100. I admit I tried it at one point and bit it before it got worse. No play for me on oil these days.
Agreed. Picking tops is suicidal. I'll probably draw flak here but I believe high oil is a good thing for promoting what few alternatives there really are, and the development of others. Disregarding short term profits, OPEC can't be liking what high oil prices might lead to.
Though you have to wonder -- when CNBC has a permanent orange bug on the screen with the oil future listed, and when they have a bug on the bottom of the screen during their primetime shows, and when they do a one-hour "CNBC Special" on oil.......it does make you feel like we're nearing a top, at least for a little while. Would I trade it as such? No. Just an interesting situation that makes you wonder...
It is reminding me of Gold crossing 1000 with the pumping before it fell to 850. Tempting to scalp short but I'll avoid it. You never know, an OPEC meeting or some BS over the weekend could drop it precipitously.
CNBC did the same thing last year with "all time highs" in the dow. Yes, you do have to wonder. But then, you never know with the market.
Ok, i'll bite......high oil hits smaller operators harder, the potential business's trying to do real research and find real solutions, rather than "think tank" big corp committees. Looking at the history of energy, its entirely plausable that even eliminating a backyard inventor on costs alone could change the result for the worse, and rest assured, that is happening. OPEC countries are already looking at alternatives....biofuel, mainly disastrous, in almost every aspect. High oil, gives opec, major producers, cash to do r&d, but there is no rational reason to beleive they will use it to do anything other, than hold the world over a barrel, so to speak, when they calculate the inflationary impact on their profits.