However, I dont think even that will stop the slide. My thesis is that there is no oil shortage as evidenced by the tankers that cant unload their oil because of the slap fill storage containers at the ports. I believe we have reached the current price through overzealous traders and that supply-demand is not a factor anymore. Its amazing how OPEC has been stating that they dont control the price of oil yet they are now trying to frantically control the price because they are losing lots of cash everytime that barrel drops a little more. They were expecting the price to go over $100. I have news for them. Oil is traded by a certain technique. They get the loudest middle aged white men they can find. Next, they put on these loud outrageous outfits. Next, these men jump up and down. Yell, scream, dance. All this is being done in an open auditorium. Yep. Thats how oil is traded and eventually these guys are going to run out of steam. I dont think OPEC will prevent the slide...At best, it will provide a temporary floor, but the slide is inevitable. Oil has come too far, too fast. Its bound for a huge correction or a crash just like Yahoo in the year 2000. Sorry Iran, sorry Saudi Arabia. Eric Bolling is not going to save you now. Try Jim Cramer.
I have said all along that it was pure speculation that drove the price up. Now we are seeing hedge funds blowing up because they pressed there longs to hard. As more of these funds blow up then the prices will accelerate faster to the down side. Oil only costs about 8 bucks a barrel to produce. Oil should be aound $30-40 bucks a barrel max John John
If you use the historical gold to oil ratios either gold should be over $1000 an oz now or oil should be in the low 40s. Take your pick.
There is a common sensical factor here. . . If oil was so in demand and there was indeed a shortage, then where are the gas stations that have to close because they ran out? Where are the planes that cant fly because there is a shortage? I have not seen anything even close to a shortage. Now its time to say goodbye to high gas prices, say goodbye to the hybrid. I dont really like driving 4 cylinder cars anyway.