Oil is still continuing to rise relentlessly in price. Some fear it will hot £200 a barrel.
It might just do that but it will crash, make no mistake about that.
The reason why it will crash is that supply does in fact outstrip demand, though not by much and oil states are beginning to have trouble selling their oil. In fact according to this comment piece in the Times yesterday oil tankers are waiting in ports laden with oil awaiting a buyer whilst Iran can't sell enough so is pumping less. Prices are rising because oil speculators think it should and are buying and selling futures at inflated prices.
The oil market is yet another asset bubble. It will burst. When it does oil will return to $70 a barrel.
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2 comments:
If you're so sure about the price of oil going back to $70 then you should short the hell of of oil futures. You stand to make a fortunes, right?
Yoski, I would do if I had the spare cash.
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